We hope this information will help clarify the Escrow, Title Insurance and loan processes and procedures you are about to begin. The authority given to an escrow holder is strictly limited by instructions provided by the buyer and seller. The escrow officer is authorized by instructions to allocate funds for items during the escrow period, such as real estate commissions, title insurance, liens, recording fees, and other closing costs. Instructions also specify the method of collecting funds, proration of insurance and taxes and time limitations on settling the transaction. By holding all money and documents, the escrow process assures buyers and sellers that their mutual instructions will be met.
Confidentiality is another important aspect of escrow.
To effectively handle a transaction, your escrow officer must be instructed as to the required terms necessary to close. The officer will discuss escrow matters only with the parties directly involved, specifically the buyer, seller, lender, and real estate agent. No one else has access to this information, except through proper legal procedures. The escrow officer retains impartiality and confidentiality concerning the real estate process. Once all conditions are met, the escrow holder causes the necessary documents to be recorded and disburses funds according to the instructions given to the escrow officer.