Call: 123.456.7890

Settlement | The Closing

 

I always suggest RGS Title - Arlington for real esate settlements.  They can be reached at 703.351.0300

Closing the Sale of your Northern Virginia house or condo

Escrow
To finalize the sale of the Northern Virginia home a neutral, third party (the escrow holder, a.k.a. escrow agent or settlement company, settlement agent) is engaged to assure the transaction will close properly and on time. The settlement company insures that all terms and conditions of the seller's and buyer's agreement are met prior to the sale being finalized, including receiving funds and documents, completing required forms, and obtaining the release documents for any loans or liens that have been paid off with the transaction, assuring you clear title to your property before the purchase price is fully paid.

The documentation the settlement company may be collecting includes:

  • Loan documents
  • Tax statements
  • 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

Upon completion of all instructions of the escrow, closing can take place. All outstanding payments and closing costs are collected and paid at this time (covering expenses such as title insurance, inspections, real estate commissions). Title to the property is then transferred to the purchaser and appropriate title insurance is issued as outlined in the escrow instructions.

At the close of settlement, payment of funds shall be made in an acceptable form to the settlement company. As your real estate agent, I'll inform you of the acceptable form, but this is normally a bank wire or certified check.

The Settlement Company Will:   The Settlement Company Won't:
  • Prepare escrow instructions
  • Request title search
  • Comply with lender's requirements as specified in the escrow agreement
  • Receive funds from the buyer
  • Prorate insurance, tax, interest and other payments according to instructions
  • Record deeds and other documents as instructed
  • Request title insurance policy
  • Close escrow when all instructions of seller and buyer have been met
  • Disburse funds and finalize instructions
 
  • Give advice - the escrow holder must maintain neutral, third-party status
  • Offer opinions about tax implications

Mortgage Escrow Account

A Mortgage Escrow Account is established to pay on-going expenses while there is a loan on the house. These expenses include property taxes, home insurance, mortgage insurance, and other escrow items. Generally, the Escrow Account is partially funded at closing and the home buyer makes on-going contributions through their monthly mortgage payment