What is meant by closing and escrow?
The closing occurs when the buyer pays the purchase price to the seller and the seller conveys title to the seller. The buyers funds (including any earnest money deposit, any additional cash down payment and any loan funds) and the title deed are placed in escrow before they are disbursed respectively to the seller and buyer. Most major title insurance companies have escrow departments. Sometimes the role of escrow is assumed by an attorney. In any event, the parties usually open escrow soon after they execute the purchase and sale agreement by providing a copy of the agreement to the escrow agent. Prior to closing, the escrow agent prepares a closing statement, which indicates the division of closing costs between the buyer and seller. The escrow agent is usually also responsible for recording the deed in the real property records of the county. The escrow agent determines that all conditions to closing have been satisfied before disbursing the funds to seller and recording the title
