The term Escrow is a fairly well known term used in real estate market. It is an instrument which permits transfer of property from the seller to the buyer using a third party. The entire set of activities related to the management of an escrow are carried out by a professional known as the escrow agent. The closing of a real estate transaction would lead to closure of an escrow. Closing of an escrow is synonymous to closure of a real estate transaction. It establishes the transfer of legal rights of the property from the seller to the buyer. Escrow agent is also known by the names of closing agent or settlement agent. He acts as the custodian of all the money and the documents that change hands during the course of the entire property transaction. Even the title to the property is transferred by the seller to the escrow agent. In a similar manner, the buyer needs to transfer his personal equity and mortgage funds to the closing agent. It is the duty of the escrow agent to ensure that the title is transferred to the buyer and all the funds are made available to the seller in accordance with terms and conditions of the sale agreement. The settlement agent plays an unbiased role to ensure that stipulated conditions of the agreement are complied both by the seller and the buyer and the property transaction is closed in an efficient and hassle free manner. The closing agent is not an agent representing the buyer, seller, the real estate agent or the mortgage institute. He is a professional individual assigned the responsibility of coordinating all the activities required for sale closure.
At the closing meeting related to a property transaction, the closing agent would take the signatures of the buyer and the seller to indicate that all papers related to agreement and property are in order. He would also ensure to provide a certified true copy of this document to the buyer and the seller. Though the funds from the buyer are collected by the agent during the closure meeting but their transfer to the seller is with held till the sale transactions are recorded in the relevant court.
At the end of the closing session, the settlement agent would get the deed and mortgage documents notified and legalized in the applicable courts. This process would update the government record and the new buyer would find a place for himself in the official property records of the government. Once the necessary recording in government records is completed, the stamped deed is provided to the buyer. This is the original deed and the legal document certifying his ownership. Similarly, the original mortgage documents are handed over to the lending institute. It is now that the closing agent transfers the entire sale proceeds to the seller. This concludes the sale process and what is commonly known as closure of an escrow.
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