What Does An Escrow Agent Do?
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Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH). Today we are touching on the subject of escrow agent, sometimes called escrow officer, and what they do. Escrow agents are neutral third parties that ensures the buyers, sellers and lender within a real estate transaction, fulfill their agreed-upon obligations before funds are disbursed. Their duties include but not limited to:
Protect the financial interest of all parties to the transaction.
Hold earnest money in an escrow account.
When necessary, releases earnest money to right party.
Prepares settlement statements and disclosures.
Communicate with all parties in the transaction.
Request title commitment.
Request beneficiary’s statement.
Disburse funds as authorized by instructions.
Complies with the lender’s requirements.
Receive funds from parties in the transaction.
Secures the deed and other documents related to closing the transaction.
Prorates taxes and interest according to the contract and closing instructions.
Records deed, deed of trusts and any other documents.
Understanding the role of an escrow officer is just one piece of the puzzle when buying a home. Their role in the process is of utmost importance in real estate transactions. They are the unsung heroes that provides a layer of protection, ensuring that the interests of all parties are safeguarded during one of life’s biggest purchases.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
