How Escrow Works - Discover Suncoast Homes

How Escrow Works

An escrow holder is used to assure your property closes on time and the closing process goes smoothly. When money is held by a third party in a transaction between a buyer and a seller, it’s in escrow. An easy way to understand what an escrow company does is to think of how you might use PayPal for Internet purchases.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are performed prior to the sale being finalized.

These are the records that escrow companies usually compile:

  • Loan documents
  • Tax statements
  • Fire and other insurance policies
  • Title insurance policies
  • Terms of sale and any seller-assisted financing
  • Requests for payment for various services to be paid out of escrow funds

You’re ready to close when each step of the done in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. The property’s title gets handed over to you and title insurance begins per the steps of your particular escrow agreement.

When closing is completed, you’ll submit a payment to the escrow company. As your REALTORs®, we will let you know what is an acceptable form of payment.

The Escrow Holder Will:
The Escrow Holder Won’t:
  • Prepare escrow guidelines
  • Perform a title research
  • Comply with the bank’s guidelines as outlined in the escrow agreement
  • Accept payments from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all terms of agreement of seller and buyer have been met
  • Disburse payments and finalize instructions
  • Advise you – the escrow holder must maintain a neutral, third-party status
  • Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is started to pay recurring fees while there is a loan on the house. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment.

This is a simple outline of the escrow process. Your particular plan might be slightly different based on your lender and your escrow company.

Questions? We are standing by ready to answer any questions you may have. Feel free to use the contact form below.

Client Testimonial

Kim Burns and Ed Bertha went way above and beyond the duty. They were tireless in the efforts on behalf of our sale. They had personal out of pocket expenses… all for the sale. I would recommend Kim Burns and Ed Bertha to anyone who needs a true team player.

Kristine Blackwell

Great people who know the market and listen to needs.

Cheryl Valdebenito

Outstanding integrity and service!

Steven White 

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