Escrow & Closing For Sellers
Once final mutual acceptance has been reached, you and the buyer move onto the next stage, closing and Escrow. Escrow is an independent 3rd party whose primary responsibility is to close the sale transaction as outlined in the Purchase and Sale Agreement. The escrow agent acts as a guardian over the process and makes sure that both the seller and buyer adhere to their sides of the bargain.
Escrow is the equivalent of PayPal. First, you place an ad on eBay for a piece of burned toast that appears to have Elvis’ face on it. Money form the winning bid will be held by PayPal. When the buyer gets delivery of the now infamous Elvis toast, Pay Pal releases the money to you.
In Washington State real estate, Escrow’s responsibilities include:
• Acting as intermediary among various interested parties. This includes lenders and lien holders.
• Ensuring that the title to the property is marketable, i.e. is the seller legally entitled to sell the property?
• Facilitating the signing of all closing and lender documents.
• Receiving, holding and disbursing the funds involved in the sale including the buyers earnest money.
• Responsible for ensuring that the appropriate security documents are recorded with the County Recorder.
There are multiple escrow companies in the Seattle area but all must abide by the same code of conduct and state regulations. The seller’s side will usually choose the escrow company but both the buyer and seller split the escrow fees.
