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Closing of Escrow - Defined

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By : Flynna Jones    99 or more times read
There are so many words used in the real estate industry that you might have a hard time understanding them. One of these is the escrow. An escrow occurs when a third party takes place in the buying of the house. Generally, the seller with give to a third party the full responsibility of managing the sale of the house before any document signing happens. The third party will also have to make an escrow account for the transaction.

Apart from that word escrow, there is also the close of escrow. Many find it difficult but this is simply another word for closing. The last step should go smoothly. But if there are issues, closing may fail. Issues may arise because of not having much time to prepare. The closing agent who misses to prepare the important papers usually becomes the root cause for the problem. And even if you have the papers but the content is not right, everything will still be useless.

To avoid issues, look for a credible closing agent. The buyer usually has the chance to choose the agent. You can ask for suggestions and recommendations from your real estate agent. He should be experienced enough. Be careful that apart from preparing the papers, he is also held liable to show the papers to all parties included in the transaction. If any of you have clarifications, he must be able to answer them correctly.

As stated awhile ago, there are different people who take part in the close of escrow. They are the seller, lender representative, lender, brokers, real estate agents and lawyers. Some do not have legal counsels with them. But they should have somebody who can represent them in the transaction and protect their best interest. Getting attorneys will also secure the legal process is being observed. This will ensure that there are no fraudulent transactions going on.

While the transaction is going on, you have to remember that you need to pay certain fees. The allocation of payment will be given too. Even if the actual payment will occur as soon as the transfer of ownership is done, the other parties will have to check and attest to it so that the previously agreed figures are still followed in the contract.

The closing is really essential as this is the time when papers are shown and signed. But prior to any contact signing, be sure that you have completely understood them. Do not hesitate to clarify things if you are in doubt. Apart from that, you will also have to pay for the closing cost. The closing cost has various charges. You will know how much you will pay through the settlement statement. This will be provided to you ahead of time. You can make the negotiations before to adjust the closing cost.

The close of escrow is important and thus it is vital that you have to get a credible closing agent to do the job for you. This is keep you away from frauds and scams later on.
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