A neutral third party or attorney that handles the exchange of money and documents once
mutual acceptance
The point when both the buyer and seller agree on the price and terms of a deal.
is reached on an offer. Escrow handles the transfer of the buyer's loan documents and property taxes and works with a buyer's lender and real estate agent to make sure that the
title
A legal document listing the history of ownership of the home. A title report lists all parties with a legal claim to the property, what items need to be cleared from title before the new buyer can take possession, and if there are any easements or encroachments on the property.
of the home is clear of
liens
Any legal claim of ownership listed on the title of the home.
before the transfer of ownership. In addition, escrow agents prepare the
HUD-1 settlement form
The official settlement document for the purchase and sale of real estate that lists all the costs of the transaction for both the buyer and the seller.
that lists the costs of the transactions that both the buyer and sellers must pay at closing.
