Buying a house is one of the biggest financial decisions that you can make in your life. It can also be a confusing time, making sure that you know where all of your money is going. Make sure that you understand the escrow process and how it relates to the entire real estate process when you are buying a home.
The main purpose of escrow is al allow a third party to safely facilitate the purchase and sale of a property. It acts as a safety net for both the buyer and the seller throughout the entire real estate process. The home seller deposits their agreements into escrow, and the seller makes their payment through escrow. The transfer of the title deed can only take place when both sides are satisfied with the conditions of the home sale.
An escrow can only be closed once the buyer has completed all the requisite payments. The closing date of the escrow is typically stipulated because the terms of the escrow account are legally binding. Any default during the production of the required paperwork or the payment process can lead to a termination of the entire deal, which would mean financial losses for both of the parties involved.
There are many reasons that the closing date of escrow can be missed from both the seller or buyer or even both parties. These reasons can include:
- If the seller is unable to meet the requirements that were specifies in the contract, the seller can choose to take specific legal action that can force the seller to pay some compensation.
- If the buyer is unable to complete the payment on time, the seller can keep the money that has already been paid into escrow as compensation for damages.
For all of your Hermosa Beach escrow needs, contact the real estate professionals at Brighton Escrow.