The final stages of the home buying process require an Escrow account. Escrow is a third-party entity that acts as an intermediary for the buyer and seller during the home selling process. They temporarily hold funds until specific conditions are met, usually the fulfillment of the purchase agreement.
One of the most misunderstood parts of the home-buying/home-selling process is escrow. Many people believe that their escrow officer represents them, this is not true and is a common misconception. Below are the top 5 questions you should ask your escrow officer to make sure you're all on the same page:
Do you review offers with me?
Can you advise on what to counter offer?
Do you work with the the buyer's agent on my behalf?
Do you help me submit time-sensitive documents?
Can you help me with issues I face the transaction?
Do you negotiate for me when it comes time for repair requests, appraisal issues or when a buyer requests credits?
If your escrow officer answers "yes" to any of these questions, then there's a problem. Remember, an escrow officer does not work for the buyer or the seller and must remain neutral in any transaction. Their primary role is to hold funds and records the title transfer.