The Meaning of Title and Escrow
When you purchase Sedona real estate you will typically use the services of a title company and/or and escrow company. Some companies handle both services in one.
When you buy Sedona property you will need to acquire title insurance. This is a one time premium fee (unlike most insurance which is monthly). Your escrow agent will typically set this up for you or your real estate agent. This protects you in the future against any ownership issues that may ever arise. The title company thoroughly researches the title and deed to a property to make sure the seller has legal right to sell the property and that no other liens are against the property that could come back to haunt you later. This fee is usually built into the closing costs.
An escrow service is the middle man so to speak throughout the entire transaction. They are a neutral third party that handles all the monies and dispurses it at closing. Once you place an offer on the table you will naturally present earnest money as well. The earnest money is either deposited with the broker's account until escrow needs it or directly with escrow. This money is then credited back to you, the buyer, at closing toward the purchase of the home.
Escrow can only do what they are directed to do. The agents on both sides give clear directions to the escrow company what they are suppose to do with all money, documents and proceedures. The escrow company is usually where buyer and seller sign all the final documents and then Escrow files the deed with the county.
For more information on how to start or open escrow with one of our reliable companies please let us know. We want to be your source for all areas of Sedona real estate.
Read more: Differences and Duties of A Buyer's agent and Listing Agent