Will you be purchasing a property that requires that the transaction go through escrow? This is essentially when you use a neutral third party to transfer ownership, but it requires some additional steps that you need to be aware of. Here is what happens when using an escrow notary for purchasing a home.
Initiating The Purchase
The process starts when you and the seller agree to the terms of the real estate transaction. This is typically when an offer is accepted on a home and you decide to move forward with the purchase based on the agreed-upon amount. At this point, you'll have a purchase price of the home and know how much money needs to be deposited into an escrow account.
Funding The Escrow Account
You will then put the necessary funds to complete the real estate purchase into an escrow account by going through an escrow notary. This will be done through a wire transfer or a cashier's check, which ensures that the funds going into the account will not have any issues being cleared by a bank. The escrow notary will essentially hold onto the funds until every condition of the sale has been finalized.
Preparing Documentation
The escrow notary will then create all of the necessary documents that are needed for the real estate transaction. They'll create a purchase agreement, which is a binding contract that includes the price of the home, payment terms, and contingencies that allow you to walk away. There is also a bill of sale, which gives details of the property transfer between buyer and seller. Title documentation will be prepared, which includes affidavits stating that the property is clear of any title issues.
Signing The Documents
The escrow notary will then have the buyer and seller sign the documents that were created. One job of the escrow notary is to ensure that the documents have been signed correctly and that everything is legally binding. Missed signatures and incorrect signatures will be caught at this point in the process and need to be corrected before the sale can move forward.
Distributing The Funds
With the documentation verified, the escrow notary will release the funds to the seller. Any fees and taxes associated with the sale will also be paid from the escrow account by the escrow notary. If there are any extra funds in the escrow account, then they will be returned to the buyer.
For more information, contact a local company, like NB Notaries LLC.
