What items should you check escrow?

What items should you check escrow?

When you are involved in a real estate transaction, one crucial step is to ensure that everything is in order before closing. Escrow is an important part of this process, as it acts as a secure holding place for funds and documents until all conditions of the sale are met. But what specific items should you check in escrow to guarantee a smooth closing? Here are some key things to look out for:

1. Are all necessary documents present?

It is essential to verify that all required documents, such as the purchase agreement, disclosures, contingency clauses, and title reports, are in escrow and properly executed.

2. Is the purchase price accurate?

Double-check that the purchase price in the escrow instructions matches what was agreed upon in the sales contract.

3. Are property taxes and insurance premiums being paid?

Confirm that funds are being set aside in escrow to cover property taxes and insurance premiums, as these expenses are often paid out of escrow.

4. Have all necessary inspections been completed?

Ensure that any required inspections, such as termite, home, or roof inspections, have been conducted and that the results are satisfactory.

5. Is the title free and clear?

Review the preliminary title report to ensure there are no liens, judgments, or other encumbrances that could affect the property’s ownership.

6. Have all seller obligations been met?

Make sure that the seller has completed any required repairs or other obligations outlined in the purchase agreement before closing.

7. Are all contingencies satisfied?

Check that all contingencies, such as financing or inspection contingencies, have been satisfied before moving forward with the closing process.

8. Is the loan commitment in place?

Verify that the buyer has secured a loan commitment from their lender to ensure that financing is in place for the purchase.

9. Have all closing costs been accounted for?

Ensure that all closing costs, such as escrow fees, title insurance, and recording fees, are accurately calculated and included in the closing documents.

10. Are there any outstanding disputes or issues?

Address any unresolved disputes or issues between the buyer and seller before closing to prevent delays or complications.

11. Is the final settlement statement accurate?

Review the closing statement to verify that all charges and credits are correct and that the final figures align with what was agreed upon.

12. Have all parties signed the necessary documents?

Confirm that all parties involved in the transaction have signed the required documents to finalize the sale and release funds from escrow.

Checking these items in escrow can help ensure a smooth and successful closing process for all parties involved in a real estate transaction. By being diligent and thorough in reviewing these key elements, you can prevent any potential issues or delays that may arise during the escrow period. Happy closing!

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