REALTY 1 ADVANTAGE

ESCROW

Just what exactly is escrow? It’s an arrangement in which something of value (such as money or a deed) is held by a disinterested third party, called an escrow agent, until certain conditions specified in the escrow instructions have been fulfilled.

The key to the above definition is "disinterested". In real estate, an escrow agent is the one party who does not have a vested interest in the purchase and sale transaction, nor an allegiance to the seller or the buyer. It is important to have someone who is neutral to the situation, has expert knowledge and will hold funds in trust and disperse them at the appropriate time.

The escrow company gathers and verifies that the documents from both buyer and seller are not only received but are in proper order so the deal can close. This includes reviewing the title report, purchase and sale agreement and addendums, seller disclosure statement, any judgments, homeowner’s insurance certificates, government forms, lender documents, and anything else that is pertinent to the sale.

Escrow agents also coordinate with the title company, who is responsible for issuing a title report and usually for getting the deed recorded with the county to show the transfer of ownership.

From a financial standpoint, the escrow company receives the buyer’s earnest money and holds it until closing. At closing, when the buyer or their lender issues the money for the purchase, it goes to the escrow company. The agent makes sure that all parties are given their portion of the funds, according to the instructions given by both buyer and seller in the purchase and sale agreement.

Think of the escrow company as the clearinghouse for a home sale. The escrow agent is not only the coordinator who keeps all parties in communication and supplied with the final documents, but is the driving force keeping the transaction moving along as quickly as possible. Therefore, choosing the right escrow company is very important.

Realty 1 Advantage has a relationship with Professional Escrow Services, one of the leading escrow companies in the Puget Sound area, to act as the agent in our real estate transactions. They not only handle closings efficiently and honestly, but they have a host of other services available that occasionally are needed. Additionally, they offer a 25% discount on escrow to clients of Realty 1 Advantage. Since escrow fees are shared by both parties, this means that the buyer and seller each save money.