Before we proceed to some other issues, it’s important to know what escrow is. It’s a type of account in the field of real estate that protects a holding area where its essential items remain safe. An escrow company deals the things like contracts and check of the earnest money.
And it’s responsible for the process until the deal closes and house changes hands officially. That means escrow is an agreement with a contract and a third party manages the amount and documents. So, let’s know about in details of escrow before you search the term “cash for inherited home in Dallas buy’.
Escrow – How It Works
There are escrow agents and they work as a third party. It could be someone from an attorney, real estate Company, or an agent of Title Company. As there is a third party, it ensures the smoother transaction process. The process includes check or cash money and documents relate to the agreement.
Since it makes sure that no fund changes hands in an illegal way from the lender, it protects both parties. The amount remains safe until it goes with all described conditions have met in the agreement. In this process, the escrow agent or company file the proper documentation.
They properly follow the steps that have been said on the agreement. Also, it could be a part of the agreement, including repairs, inspection, and other related tasks need to complete by seller or buyer. When a specific step has been completed by any party, they need to sign off with a release form of contingency.
Costs & Deposit
It varies. Also, it depends on how much the buyer or seller pays. It may cost up to 2% of the total amount of the whole property with the service fees of the real estate agent or company. Also, there is another thing related to the issue is the deposit of earnest money.
It also says an escrow deposit that an amount of dollar that a buyer keeps in the account. Up to the transaction, the company is able to hold on the amount. The issue also describes as a deposit of “good-faith”. When the buyer violates the agreement and is unsuccessful to close, it’ll recompense the seller.
How It Protects You
Although you may feel escrow like a pain, it works on your favor. For example, when buyers inspect a house, they may find the roof of the house needs repairing. Also, the seller becomes agree to repair the issue. But, in the final inspection, you can find the issue of the roof has been not fixed. The amount stays safeguarded until the issue has been solved.
Also, sellers get advantages from this system of “sell my house fast Burleson”. Buyers may bail on the process of the transaction at the last minute. Although it could be annoying to the sellers, it benefits them at the end of the day. That means if the buyer leaves the agreement without any valid reason, the seller will get the escrow money within a specific time.
