Do Title Companies Handle Escrow?
May 09, 2019Closing on a home is the last step of the long, complex process of buying a home. There are a number of professionals in the real estate business that can help you every step of the way, but not all of those professionals can handle every aspect of purchasing a home. If you are in the process of buying a home or you have already been through the process, chances are good you have some idea what an escrow account is and why it is necessary. The escrow account, in fact, is the central element in a real estate closing. It is often surrounded by a lot of mystery, however. Who sets up and escrow account? Who manages the escrow account? What goes into the escrow account? Do title companies handle escrow or is the buyer or seller responsible for handling the escrow account. Seasoned professionals will already know the answers to these questions, but new home buyers may find themselves completely baffled by the process.
What is the Purpose of an Escrow Account?There are two types of escrow accounts. This can cause some confusion for home buyers. You will hear the term "escrow account" a lot during the process of buying property. This is a different escrow account than the mortgage escrow account set up by your lender once you have purchased your home, though they serve a similar purpose. A mortgage escrow account is an account used to manage payment of the mortgage and property taxes. The account is a central location for the funds necessary to ensure all obligations are met. A mortgage escrow account is typically set up and managed by the lender, making it convenient for the homeowner. The mortgage escrow account has nothing to do with the escrow account used to facilitate the closing of your home or property.
The escrow account referred to during the purchasing and closing process of a new home serves a single purpose—to hold the many documents, funds, and other related material necessary for the closing of a real estate transaction. This includes the property title and any money that will exchange hands when the property is closed on. An escrow account can be managed by a title insurance agent, a lawyer, a notary, or a title company. There can be many people involved in a real estate closing, which can often become confusing in and of itself. This is why it's so important to find a company that can handle most or all of the services in a single location. To further complicate matters, the buyer and seller can use different agencies to handle their closing business.
The escrow account is set up once the buyer and seller have signed a mutually acceptable purchase agreement. The buyer's agent then collects the buyer's earnest money and it will be placed in the escrow account, along with the deed to the property. Other documents will be added to the account as necessary during the transaction, which culminates in the closing of the property and the exchange of funds and deed (along with the keys to the property). An escrow agent or an escrow company can manage the escrow account. A closing company may have someone dedicated to managing the account. The terms are often confused because anyone who manages the account can be called an escrow manager. A title and escrow company can often handle a range of services. Whatever the case, the escrow company, whether they work for a closing company or as an independent agent, is a neutral third party that collects, manages, and distributes at the end of the closing all of the funds and loan documents associated with the transaction. In some areas, attorneys may handle this process instead of an escrow company. Whoever handles the process, the escrow account is the focal point of the entire transaction from start to finish.
The Best Option for Your Closing in FloridaKey Title & Escrow is a company that can handle Florida real estate transactions from start to finish. We offer a full set of services that include property title searches, searches for judgements and liens, record owner searches, Florida title and homeowner's insurance, settlement services, 1031 tax deferred exchanges, and many other services related to closings. We can set up and manage your escrow account, facilitate closings on weekends and after hours, and even do in-home closings for those who have trouble getting out of their home. These services and many more are what make us the best choice for real estate transactions and closings in Florida, all under one roof, making it convenient for both the buyer and the seller.
At Key Title & Escrow, we can be with you through the process from start to finish. We've served the real estate industry for more than 23 years, building a reputation for efficient, stress-free closings. During this time, we've developed solid relationships that allow us to handle closings of all types with a level of professionalism that can't be matched.
We take pride in not only our quality closings, but in the customer service we provide. Our professionals adhere to the absolute highest standards in the industry. We provide fast, reliable, professional service and a commitment to making your experience the best closing experience possible.
When you are ready to buy a home, contact Key Title & Escrow. Let us handle your transaction from start to finish. The quality of our service, our commitment to our customers, and the relationships we've built in Florida are a testament to our ability to provide you with the best closings statewide in Florida. Whether you are a buyer, seller, or realtor, you are our priority.
When you choose Key Title & Escrow, you're choosing a title and escrow company big enough to handle any closing with professional results and small enough to give our clients individual and personalized service. We handle closings throughout Florida and we will provide after-hours and weekend closings if need. At Key Title & Escrow, your satisfaction is at the core of everything we do. Our goal is to provide you with the absolute best in closing services. Call us today at (800) 547-0006 (toll free) or locally at (305) 235-4571 to find out what we can do for you.
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