What is Escrow?

Why use a KeyStone Escrow Agent?

When real property changes hands, it is prudent and convenient for the buyer, seller, and lender to place the transaction in escrow to be closed. Going into escrow simply means depositing the earnest money and documents relating to the transaction in the hands of a responsible, experienced and impartial person. This person your KeyStone escrow agent holds all money and documents until each party’s written instructions are performed. These written escrow instructions include the requirements of the buyer, seller, and lender as to transfer of funds, condition of title, recordation of documents, issuance of a title insurance policy, and other matters. An escrow agent represents neither the seller nor the buyer, and can only act on each party’s behalf according to their written instructions. 

How does escrow benefit the seller?

The seller depends on a qualified escrow agent to ensure that title will not pass to the buyer until the purchase price is fully paid and the terms of the purchase agreement are satisfied. 

How does escrow benefit the buyer?

The buyer relies on an escrow agent to ensure that his/her interests are also protected and that purchase funds will not be released to the seller until escrow has received a valid deed conveying title. 

Who else benefits from escrow services?

Lending institutions top the list of escrow customers. Using a reliable title and escrow company guarantees the lender that its security interest in the property is insurable, all financing documentation will be properly and completely signed and recorded, and monies will be disbursed as directed.

Using a trained escrow agent to supervise and close transactions also allows other professionals such as attorneys and real estate brokers to spend their time working for clients in the areas in which they specialize.

• Deposits funds to pay the earnest money and property and closing costs.
• Executes deed of trust or mortgage needed to secure the loan.
• Arranges for borrowed funds to be deposited into escrow.
• Provides, if required, documents such as inspection reports, insurance policies, and lien information to verify compliance with the instructions.

• Deposits the deed to the buyer with the escrow company.
• Provides evidence to meet the buyers’ conditions of sale, such as proof of repair work and inspections.

• Deposits loan funds, lender instructions, and other loan documents with escrow holder.

The Escrow Holder:

• Orders the preliminary title report and distributes appropriately.
• Serves as a central depository for funds and documents.
• Obtains a title insurance policy, when required.
• Fulfills the lender’s requirements, if applicable.
• Secures approval from the buyer on requested documents.
• Prorates insurance, taxes and rents, as instructed.
• Fulfills buyer’s and seller’s instructions.
• Allocates funds for closing costs, and verifies that required funds from each party are deposited into escrow.
• Prepares closing documents.
• Ensures that the necessary documents are recorded once conditions are met.
• Forwards executed documents to the lender.
• Keeps record of transaction. 

  Back Up

Providing escrow services enables KeyStone Title to offer customers a full range of services. Escrow agents must work closely with a title insurance company to clear and transfer title correctly. An escrow closed at KeyStone Title centralizes control of title records and necessary sale documents and saves all parties considerable time and effort. 

1. Seller’s Title Policy, which contains the correct legal description and correct vestings. If policy is not available, bring the seller’s deed.
2. Full names, addresses, and phone numbers of buyers and sellers.
3. Names, addresses, and loan numbers of existing liens, trust deeds, or mortgages.
4. Terms of new encumbrances.
5. Fire insurance policy (usually held by mortgagee-seller).
6. Current tax bills.
7. Complete list of tenants, rental dates, rental rates, and leases for income property.

When a transaction closes with Keystone there is no additional cost for " escrow". The regular escrow service is included in the normal costs for providing title insurance and closing services to the seller, buyer and lender.