Opening An Escrow Account
Opening an escrow account is not at difficult. All you have to do is choose an escrow company or a title company, go to the office of the company, fill up the required forms, handover the money so that it is deposited into the account and then give the company all the necessary instructions to carry out the transactions.
Anyone who is part of the real estate transaction, like the seller, buyer, lender or real estate, can open an escrow account. Who opens the account is not important as long the parties involved have authorized the person to do so at the time of signing the final agreement of purchase. In case, a real estate agent is not part of the transaction, the seller is the one who begins the process of opening an escrow account as he or she receives the deposit or a good faith payment as well as the a signed agreement from the buyer.
When opening an escrow account, the following information will have to be furnished to the escrow company:
- Address of the property that is being sold
- Detailed description of the property
- Purchase price of the property
- The name and complete address of the seller
- The name and complete address of the buyer
- The parties to who the initial title report has to be sent. Usually, the report is sent to the lender, seller and buyer
- Termite report information highlighting who will be conducting the inspection
- The deposit amount that has to be in the escrow account
- The details of the insurance agent of the buyer
- All the financing information
- Personal property that is part of the sale
- The estimated date of closing the deal
Once you furnish all the above information to the escrow company, an officer will be assigned to you and you will receive an escrow number. This number is the one you should quote when you call up the escrow company to find out about the progress made on your escrow account.
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