Learning About Escrow Closing ProcessThe most important and the most awaited part of an escrow is its closing. And both,the buyer as well as the seller waits eagerly for this phase. Escrow closing process ensures the transfer of property from seller to buyer. That is the actual time when the buyer gets the possession of the new place. The process of escrow deed is not long, but all steps related to it should be taken properly. The process of escrow begins with the opening of the escrow offers, and comes to an end when both the involved parties close the offer. At the closing of the escrow deed there are some common but important points that all parties need to take care of. Buyer esspecially are supposed to collect all the documents, and present them before all parties involved in the transfer. Contract papers, proof of title, and insurance papers are necessarily required in escrow closing. In most of the cases, the buyer also gets the privilege to step into the property before 24 hours of the closing to inspect and see if everything is perfect according to the deed. And finally it is the time to close the escrow. All parties are required to be present for the occasion, and are supposed to fill in some legal documents before handling over the possession. Usually, there are two kinds of documents: (1) Which are signed between seller and buyer, and (2) which are signed between the buyer and his lender. It is highly advisable to read thoroughly all documents before signing them. After signing the legal documents, it is time for the payment of various costs incurred in the transactions. Payments of these costs are made by either buyers or sellers, or may be by both, as agreed upon. The various parties required to be present at the closing ceremony of the escrow are: Attorney, Closing agent, Seller of property, Buyer of property, and Seller's real estate agent (if appointed). It is the duty of the closing agent to ensure that all documents are submitted, signed, recorded, and all fees are duly paid and distributed properly. At this time, the buyer will receive some important documents. They include:HUD- (1) settlement statement which will include all costs related to the transfer of property. (2) Final TILA statement which will include the total cost of the loan, and its APR taken by the buyer. (3) Mortgage note which will include buyer's promise to pay the loan. (4) Deed of trust which will include the actions that the lender will take, if the buyer fails to repay the loan. (5) Certificate of occupancy which will include the legal authority, in case the buyer is buying a new property. Once all formalities are complete, and all documents are received, the buyer gets the legal ownership. At this stage escrow closing process comes to an end with the successful transfer of the possession of property. |