Now 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 acquisition. Once the purchase agreement is executed, the lender will start the loan application process, the purchaser will complete the required inspections, a survey may be performed, and the title insurance company will search the title to provide a title commitment to the lender and purchaser which contains any interests in the property.
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 Insurance Company or the Purchaser’s Lender.
In the State of Ohio, there are two types of escrows. The first kind, a “Roundtable Closing” is a closing with all the parties 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, purchasers and sellers never formally meet to exchange documents. The Escrow Agent coordinates separate appointment times to have documents executed. Once all of the documents have been executed, and all instructions have been met, the purchaser’s funds are wired.
An Escrow Agent will contact you closer to the closing date to schedule an appointment. Sellers and purchasers are required to bring photo identification (drivers license) to the closing. 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, the Lender’s instructions, and any attorney’s instructions have been met. Once all conditions have been met, the Escrow Agent will authorize filing and disburse all funds after the title transfers.
If you should have any questions regarding Title Insurance or Escrow, please contact Emerald Glen Title Agency, Ltd.
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