What service does an escrow agent perform?
An escrow agent prepares the necessary instructions from the buyer and seller and receives the necessary documents and funds. They prorate rent, taxes, interest on liens to be assumed, and obtain endorsements of existing fire insurance policies. Escrow agents also clear drafts deposited by the purchaser, obtain title insurance for protection of the buyer, and pay liens and costs authorized by the parties. They are responsible for the recording of all legal documents and disbursement of funds at the closing of the transaction, as well as, furnishing each party a closing statement showing the disposition of funds. Who pays the escrow fees? The escrow fee is usually split between the buyer and the seller. This can always be changed by an agreement of the parties. How do the parties benefit from an escrow? Both parties are assured that the transaction will be properly and promptly closed. The seller will see that title will not pass to the buyer until the purchase price is fully paid, or t
