How Escrow Works - Lauren Stratton Realty

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 REALTOR®, I 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? I am standing by ready to answer any questions you may have. Feel free to use the contact form below.

Client Testimonials

Lauren was very attentive and seemed to handle everything with ease throughout the whole process. She went above and beyond several times for us, which we really appreciated. We're now enjoying our new home!

The Whitlocks

Lauren made the process entirely too easy. It was seamless. I would highly recommend her to anybody that I know that's even considering looking for a home because she catered to every single need that I had, and she is a sweetheart. Thank you, Lauren!

Jacob Monk

Lauren is an amazing REALTOR® and will be our go-to real estate professional if we need one again. All my family and friends will be sent to her! She was very detailed and knew a lot about the property and the surrounding area. Could not ask for a better agent! 

Douglas Kemp

Lauren was an excellent REALTOR® - we couldn't have made our purchase without her, and forever grateful for her help in finding our "forever home"!

Diane Kennedy

Let's Connect

We're social! Connect with Lauren Stratton Realty on all the popular social media channels.

Newsletter Sign Up

Sign up to receive periodic updates from Lauren Stratton Realty including local Triangle event info, real estate tips, and fun contests and giveaways!

Please enter a valid email address.
Something went wrong. Please check your entries and try again.
Scroll to Top