How Escrow Works - Latte Stone Properites, LLC, Guam

Whether it's your first home or your next home, I'll educate you through the process. E-mail me at frank@lspguam.com to get some free information.

Completing the Transaction

Latte Stone Properties, LLC can walk you through closing - (671) 647-5577

Let's talk about "escrow". When you're closing on your new property, a neutral, third party (known as the escrow holder or the escrow agent) is used to insure the process will close properly and in a timely manner. Escrow holders hold money for "safe-keeping" in transactions between a buyer and seller. For example, in a Web auction, PayPal is the secure third party that holds the buyer's money, and then hands over the funds to the seller.

The escrow holder makes sure that the terms and conditions of the agreement between the seller and buyer are reached in preparation of the sale being completed.

Escrow companies compile the following documents:

Fire and other insurance policies
Title insurance policies
Terms of sale and any seller-assisted financing
Requests for payment for various services to be paid out of escrow funds
Loan documents
Tax statements

You're ready to close when all steps are complete in escrow process. At this time, all payments and fees for inspections, title insurance and real estate commissions are paid out. The home's title is given to you and title insurance is issued per the steps of your individual escrow agreement.

At the close of escrow, in an acceptable form to the escrow. As your agent, I'll let you know what is an acceptable form of payment.

The Escrow Holder Will:

Assemble escrow guidelines
Request title search
Comply with the bank's standards as noted in the escrow agreement
Intake funds from the buyer
Prorate insurance, tax, interest and other payments according to guidelines
Record deeds and other paperwork as instructed
Request title insurance policy
Close escrow when all terms of agreement of seller and buyer have been finished
Disburse payments and finish instructions

The Escrow Holder Will Not:

Offer advice - the escrow company must stay at a fair, third-party status
Dispense opinions about tax implications

The Escrow Holder Will:		The Escrow Holder Won't:
Write escrow guidelines Petition title research Comply with the bank's guidelines as written in the escrow agreement Accept funds from the buyer Prorate insurance, tax, interest and other payments according to instructions Record deeds and other legal documents as instructed Request title insurance policy Close escrow when all terms of agreement of seller and buyer are complete Disburse funds and finalize instructions		Give advice - the escrow company stays at an impartial, third-party status Offer opinions about the outcome of your taxes

Mortgage Escrow Account

Often, to pay recurring costs while there's a loan on the house, a Mortgage Escrow Account is created. Escrow Accounts are contributed to monthly by the home buyer (who is now the homeowner), but there is also a lump sum that goes into the account at closing.

Now you know more about being in escrow. And, you can be a more confident home buyer and future homeowner.

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