What Are Escrow Fees? - (512) 775-3737

Whether it's your first property or your next place, I'll walk you through the process. Contact me and I'll make sure you're a well-informed buyer.

Completing the Transaction

Karp Real Estate Team/Tribe Realty Austin can walk you through closing - 5127753737

Escrow: When you're closing on your new place, an escrow company is used to assure the process will close correctly and in a certain amount of time. When funds are 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 compare it to PayPal for Internet purchases.

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

Escrow companies look for the following legal documents:

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

You're ready to close when all steps are complete in escrow process. All expenses like title insurance, inspections and real estate commissions are paid. Title to the home is then given to you as new owner and related title insurance is issued as noted in the escrow policy.

The escrow holder receives a payment when the closing is complete. I'll keep you up-to-date on the next steps.

The Escrow Holder Will:

Assemble escrow instructions
Petition title inquiry
Comply with lender's guidelines as specified in the escrow agreement
Receive payments from the buyer
Prorate tax, interest, insurance and other fees according to instructions
Record deeds and other documents as instructed
Obtain title insurance policy
Close escrow when all instructions of seller and buyer have been finished
Disburse funds and finish instructions

The Escrow Holder Will Not:

Offer advice - the escrow holder must stay at a fair, third-party status
Dispense opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Prepare escrow guidelines Perform a title search Comply with the bank's guidelines as noted in the escrow agreement Accept funds from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other paperwork as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer have been met Disburse monies and finalize instructions		Tell you what's best - the escrow company stays a neutral, third-party status Give insight about future tax estimations

Mortgage Escrow Account

A Mortgage Escrow Account is established to make payments for rolling expenses while there is a loan on the house. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

This is a simple outline of the escrow process. Your individual process will vary based on your lender and your escrow agent.