Escrow, Amendments, Contingencies and Inspections
What is an escrow?
The escrow is the process of having a neutral party manage the exchange of money for real property. The escrow holder is known as an escrow or settlement officer or agent. The Buyer deposits funds and the Seller deposits a deed with the escrow holder along with all of the other documents required to remove all "contingencies" (conditions and approvals) in the purchase agreement prior to closing.
How and when is an escrow opened?
Once a purchase agreement is signed by all necessary parties, the agent representing the party who will pay the fee selects an escrow holder and the Buyer's earnest money deposit and contract are submitted to the escrow holder. From this point, the escrow holder will follow the mutual written instructions of the Buyer and Seller, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other. The escrow holder also follows the instructions of the Buyer's new lender, the Seller's existing lender, and both parties'agents. The escrow holder ensures the transparency of the transaction, while carefully maintaining the privacy of the consumers.
During the escrow period, the buyer and seller will continue to work together to remove contingencies, if any, from the purchase agreement. This is when the most negotiation and work flow comes into play. As your agent, I will keep the process moving along, making sure you are fully aware of any deadlines, reports, inspections or other actions that need to be completed.