Header Image

What Exactly Is Escrow?

ESCROW? What is it?

 A third party holds onto your escrow funds and documents involved in your home sale, when the time come it is distributed among the parties accordingly.   The escrow period begins when a seller accepts a buyer's offer, and ends at the closing table.  Certain companies will perform excrow in office rather than hiring a 3rd party.

You will be able to move faster if you earnest deposit money is an an easily accessible account when you begin home shopping.

There's a lot of money involved in purchasing a home its not like buying a pair of running shoes. The sellers and buyers don not exchange money and documents directly with one another. Thats what the escrow account is for. 

Buyers want to be sure that all their contingencies are met (such as: inspection, title report, secured mortgage, etc.) before the sellers cash any checks. Escrow money just ensures their accountability to continue with the transaction. Sellers want to make sure they have the funds in hand before they hand over the deed.

What happens?

An escrow account opens up when potential buyers write an earnest money check that accompanies their offer to show the sellers that they’re serious about buying the home. Some real estate company's handle the escrow/closings at their offices with the help of a closing manager. 

A settlement/closing agent or escrow officer, does the following:


• Holds documents and funds.
• Facilitates and processes the flow of funds and documents.
• Keeps all parties informed on how the transaction is going.
• If the lender has requirements they help clear them up.
• If necessary the will help secure title insurance.
• Gets approval of documents and reports from all parties.
• make adjustments and prorates insurance, taxes, rents, fees, etc on closing sheets.
• Takes the deed and loan documents to be recorded at the end of the transaction.
• Holds onto money owed and money deposited and keeps record of it.

When all the tasks are finished, the escrow closes. Funds are paid out accordingly, documents are recorded at the court house and copies of forms are given to the parties involved.  

GET IN TOUCH

Share


Local Expert Updates

Broker/Owner

Donna De Weerd

Phone: 712.722.0045
Cell: 712.441.5627

Broker/Associate

John Calsbeek

Phone: 712.722.0045
Cell: 712.330.2943

Sales Associate

Rachel Hoogeveen

Phone: 712.722.0045
Cell: 712.441.5100

Sales Associate

Kimberly Dekkers

Phone: 712.722.0045
Cell: 605.610.5138

Sales Associate

Darren Van't Hul

Phone: 712.722.0045
Cell: 712.578.9114

Community Updates

Sioux Center Health

Sioux Center

Sioux Center Health is a faith-based, not-for-profit health ministry committed to providing the comprehensive health care and health related services in Northwest Iowa. Since its establishment in 1951, the health ministry has been dedicated to...

The Ridge Golf Course

Sioux Center

The Ridge Golf Club offers more than just a beautiful and challenging golf course. Our facilities are equipped with all of the amenities you will need to round out an exceptional golf experience including: championship 18-hole golf course,...

Sioux Center Public Library

Sioux Center

Welcome! We hope you enjoy visiting the Sioux Center Public Library! Our mission is “to fuel Sioux Center’s passion for reading, personal growth, and learning.” We hope that is exactly what we are doing by offering not only materials you can...

Subscribe To Our Newsletter

The newsletter is sent periodically and will updated you on the latest real estate news and offers.