Title companies and Escrow Officers are neutral parties integral in the purchase of real estate in the United States. A title company performs a title search and examination of the subject property, and works with the purchaser to eliminate any title exceptions you are not willing to take subject to. They also provide the policy of title insurance to insure clear title to the real property. In some states lawyers are used in lieu of title companies.
The escrow is the process of having a neutral party manage the exchange of money for real property. The escrow holder is known as an escrow or settlement officer or agent. The Buyer deposits funds into a designated escrow account. The Seller deposits a deed with the escrow holder, along with all of the other documents required to remove all “contingencies” (conditions and approvals) in the purchase agreement prior to closing. An escrow officer leads the facilitation of your escrow, including preparation of escrow instructions and documents, as well as funds disbursement.
Once a purchase agreement is signed by all necessary parties, the agent representing the party who will pay the fee selects an escrow holder and the Buyer’s earnest money is deposited and contract is submitted to the escrow holder. From this point, the escrow holder will follow the mutual written instructions of the Buyer and Seller specified in the purchase contract, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other. The escrow holder also follows the instructions of the Buyer’s new lender, the Seller’s existing lender, and both parties’ agents. The escrow holder ensures the transparency of the transaction, while carefully maintaining the privacy of all parties involved.
Your Homes2USA REALTOR® will work closely with the title company and escrow officer. We have partnered with first-class title companies to provide you with superior customer service and real estate guidance throughout the process to insure your transaction runs smoothly and closes on time.
You can also select title and escrow companies in certain counties and locations who have representatives that speak your native language. For your convenience, our Homes2USA team of REALTORS® can arrange this for you.
Transaction Process
There are multiple steps in the real estate transaction process. The process can be overwhelming for even the most educated real estate professional; however, our team of REALTORS® will make the process seamless and easy for you.
Whenever you have a question during the process, do not hesitate to ask. We are your trusted partner in insuring your real estate transaction is smooth and closes on time.
Below you will find the typical steps involved in the real estate transaction process. Your REALTOR® at Homes2USA will educate you on the entire process.
Fees – Who Pays For What (Buyer/Seller)
In addition to the sales price of a home, there are additional costs associated with finalizing the transaction. These fees, or closing costs, may vary by location. Your lender, Escrow Company, and Homes2USA REALTOR® will guide you through the process.
All closing costs must be listed on your HUD-1 settlement form, a document that is prepared by your escrow officer and is required to be filled out prior to finalizing the purchase of your home.
- A few of these fees may include:
- Real Estate Broker Commission/Fees
- Loan Fees – Direct loan costs
- “Prepaids Interest” required by the lender to be paid in advance
- Escrows/Impounds/Reserves
- Title and Closing charges
- Recording/Government Filing Fees
- Other/Miscellaneous Charges
- Harmful Fees that could appear on the HUD-1
Useful Title & Escrow Information
Fidelity National Title
First American Title