Northeast-Ohio-Title
 
 
 
Cleveland-Ohio-Title-Agency
 

Northeast-Ohio-Title-AgencyNow that the Seller and Purchaser have signed a final Purchase Agreement, what happens from here? The Purchaser will most likely be making loan application to obtain funds for the purchase. The Seller will be required to provide, among other things, a Title Search, an Owner’s Title Insurance Policy and a Deed. There will be a period of loan approval processing, required inspections, title and surveyor work and deed preparation.

Once the Purchaser’s loan has been approved, the transaction becomes an “Escrow”. An escrow is an arrangement wherein a disinterested third party, called an “Escrow Agent” is appointed to follow the written instructions of the parties up to and including title transfer. This Escrow Agent may be the Title Insurer, the Purchaser’s Lender or an Independent Escrow Company. The Escrow Agent’s responsibilities are to make sure that the terms and conditions of the Purchase Agreement and the Lender’s Instructions have been complied with, to collect the funds and documents necessary for closing, to have the purchasers and sellers sign their documents.

In the State of Ohio, there are two types of escrows. The first kind, a “Roundtable Closing” is an actual closing with all parties present at the closing table. The other type of closing is referred to as an “Escrow Closing” and is the custom in Northern Ohio. In an Escrow Closing, buyers and sellers never formally meet to exchange documents. The Escrow Agent coordinates separate appointment times to collect the documents and funds. Once all of the documents have been executed, and all instructions have been met, and the purchaser’s guaranteed funds are deposited, the Escrow Agency orders title transfer in accordance with the dates within the Purchase Agreement.

An employee of the Escrow Agent, a technical professional called an Escrow Officer, will contact you prior to the agreed closing date to schedule an appointment. Identification from sellers and buyers and bank certified funds are required. Be sure to schedule enough time out of your busy day to ask questions on items that you might not fully understand. Purchasing or selling real estate is among one of the largest financial transactions of your life. Your professional Escrow Agent will provide you with peace of mind. The Escrow Agent's responsibilities are to make sure that the terms and conditions of the Purchase Agreement and the Lender's Instructions have been complied with, to collect the funds and documents necessary for closing, to have the purchasers and sellers sign their documents, to order title transfer, and to disburse the funds and documents after title transfer.

If you should have any questions regarding Title Insurance or Escrow, please call Emerald Glen Title Agency, Ltd.