When buying a house, having an escrow agent can help to make the closing process much easier. However, it can still be a tricky process. Keep these escrow facts in mind to ensure that you fully understand how an escrow agent can help you when you are closing on your house.
- The escrow instructions should list the conditions and how the money will be dispersed at the end of closing, or what will happen to it if the transaction falls through.
- An escrow is a fiduciary relationship, but is only limited to the duties that are specifically involved in the escrow. The escrow agent works for both parties in the home sale and has equal responsibilities to both parties in the processing of the escrow.
- If a home sale transaction does not close on time, the money can still be held in escrow as long as there is no written demand from one side of the party to cancel the contract. The funds are usually held after the closing date if the date to qualify for a loan has passed but both sides of the deal still want to proceed with the transaction.
- If either side of the deal cancels the transaction, the escrow agent should not disperse any part of the funds until all the parties agree in writing exactly how they should be dispersed.
- If both sides of the deal cannot agree on how to disburse the funds, the agent has the chance to file an interpleader who will name the parties that may have an interest in the funds, and will then ask a court to decide how to disperse the money.
For all of your escrow needs and to ensure that you close on the right house for you, contact Eastland Escrows in Covina, California.