Page 16 - Laurie Gilmer, Flip Book

In terms of a real property transaction, it is the delivery by the buyer and seller of legal instruments and
money to a third person that completes the transaction in strict accordance with the instructions of the
parties. It is the neutral third party that facilitates the payoffs of any outstanding liens, encumbrances,
mortgages and unpaid taxes.

WHY USE AN ESCROW?
Escrow provides a mechanism to assure safety and convenience in carrying out the provisions of the
earnest money agreement or contract. It also assures that the strict body of rules for real property
transactions is carefully observed. An escrow placed with Chicago Title provides:
 A financially responsible and neutral third party who holds the funds and
 documents and makes concurrent delivery of the deed to the buyer and purchase money to the seller
at the moment when the terms and conditions of the transaction have been performed.
 A clearinghouse for the payment of all liens and other encumbrances.
 A trained escrow agent who performs all details in prorating and adjusting accounts between the
parties.

WHAT SERVICE DOES AN ESCROW AGENT PERFORM?
An escrow agent prepares the necessary instructions from the buyer and seller and receives the necessary
documents and funds. They prorate rent, taxes, interest on liens to be assumed, and obtain endorsements
of existing fire insurance policies. Escrow agents also clear drafts deposited by the purchaser, obtain title
insurance for protection of the buyer, and pay liens and costs authorized by the parties. They are
responsible for the recording of all legal documents and disbursement of funds at the closing of the
transaction, as well as, furnishing each party a closing statement showing the disposition of funds.

WHO PAYS THE ESCROW FEES?
The escrow fee is usually split between the buyer and the seller. This can always be changed by an
agreement of the parties.

HOW DO THE PARTIES BENEFIT FROM AN ESCROW?
Both parties are assured that the transaction will be properly and promptly closed. The seller will see that
title will not pass to the buyer until the purchase price is fully paid, or the seller’s provision as to security for
unpaid balances is fulfilled. If the seller intends to use part of the purchase price to satisfy liens, the escrow
provides a satisfactory arrangement for paying off the lien holder. The buyer is assured that the funds will
not be paid to the seller until the transaction is properly completed. If the buyer needs to use the land as
security for a loan to pay part of the purchase price, the escrow guarantees the ender that title is exactly
as required, and provides a safe method for delivery of loan proceeds or security documents.

HOW MUCH ARE THE ESCROW FEES?
Escrow fees are on a graduated rate schedule based on the full sales price.

WHY CLOSE AT CHICAGO TITLE?
With all the demands on your time, it makes sense to trust the details of your escrow
needs to a leader in the industry. Chicago Title has more than a 150-year tradition of
unparalleled quality and the people to give you the expert, dependable service you
deserve.