Among the challenges of the real estate world, understanding its terminologies would be the main concern for its players. For new home buyers and sellers, proper knowledge of the right things to say is a simple key in a successful deal. Probably the most common term you would encounter is the term “escrow.” This is commonly used to refer to the closing or settlement of any real estate transaction. Most of the time, this is the significant indicating factor that would signify the ownership is finally transferred from the home seller to the buyer. The transaction is usually performed through the assistance of a licensed escrow or closing agent. In major commercial real estate deals, escrow firms are the main handlers. In any way, the agent is responsible for the transactions regarding legal paperwork and funds transfer.
A major legal task for the agent would be about the title transfer. The property title as owned by the seller would be given to the agent. He is then in charge of the legalities attached with the property itself. As for the buyer, the agent would be entrusted with the equity and mortgage related funds. Throughout the purchase deal, the agent is the key player yet. However, for elaborate legal concerns, assistance from a lawyer is very much required. In any case, the success of closing a real estate deal relies on the escrow agent’s efforts. He would take care of all documents and monetary concerns to be fully realized throughout this stage of the transaction. With such big responsibilities, you also have the accountability for choosing a knowledgeable agent in escrow accounts. Either side you are in the deal, making sure the agent is certified and well informed would make your goals materialize.
Further efforts from the government to protect real estate consumers are taken. California for one has new laws that ensure safety of home buyers and sellers. Assembly Bill 957 or the Buyer’s Choice Act looks after buyers of foreclosed homes. This allows the prospective buyer to freely choose the local escrow agent or firm who would oversee the deal. This is way better than when you are enforced to take the seller’s recommendation.
If you are a home seller, another task you should be concerned about is the insurance of the property. Make sure that due diligence has been made before you enter and finally close the deal. Otherwise, your financial investment would go to waste. A slight miscalculation would cost the buyer multiple responsibilities. Hence, you as the seller might face further legal concerns. It is important that all of the participants in the deal are educated about the matter.
All that have been mentioned are to guarantee success of the deal. However, you should also note of the multitude of aspects that may affect setbacks for the escrow closing. These may be caused by personal reasons. One unavoidable instance would be death. Certificates regarding the death and legal transfer to the new in charge of the deal should be furnished immediately. Finances are a big factor. Lastly, you should also observe proper timing vis-à-vis current market trends. To be protected, you must have contingency plans. Once the closing is done, the agent would have the deed and mortgage registered under the new owner in applicable courts.