How Does Escrow Work?
There are several principals to a real estate escrow transaction: the buyer, seller, lender or borrower who cause escrow instructions, usually in writing, to be created, signed and delivered to the escrow officer. If a real estate broker is involved, he or she will normally provide to the escrow officer the information necessary for the preparation of the escrow instructions and documents.
The escrow officer then processes the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be closed. Each escrow, although following a similar pattern, will be different in some way as it deals with your property and the transaction at hand.
The duties of the escrow holder include: Following the instructions given by the principals and parties in a transaction in a timely manner. Handling the funds and documents in accordance with the instructions. Paying all bills authorized to be paid. Responding to authorized requests from the principals and closing escrow only when all terms and funds are in accordance with the instructions and providing an accounting of the same which is the Closing or Settlement Statement.