Law Office of Ryan S. Shipp, PLLC

The role of escrow when buying a home

When Florida residents buy a home, they will need to put funds into an escrow account. The account is managed by an independent escrow company that handles the various steps needed to transfer loan proceeds and complete the transaction. For example, the escrow company will typically hold the down payment and then transfer it along with mortgage funds to the seller.

It may also record and file the mortgage with the county recorder of deeds to protect the lender's interest in the home. In some cases, escrow is handled by a licensed individual who is not affiliated with the buyer or the seller of the home. There may be instances in which an escrow agents will be recommended by other parties.

The escrow agent is generally chosen when the purchase contract is being negotiated. From there, the escrow agent will collect and hold the buyer's earnest money in addition to other necessary documents. After the agreement is completed, the buyer will then inspect the home or complete other steps required by the lender. When the mortgage is approved, the funds are collected and transferred to the seller at closing.

When buying a residential property, it may be a good idea to hire an attorney. Doing so may help a buyer understand his or her rights and responsibilities throughout the buying process. Legal counsel may be able to answer any questions an individual has regarding his or her mortgage, how escrow works or about the title to the home. If necessary, legal counsel may be able to investigate any claims a buyer may have about items not being properly disclosed prior to the closing of the transaction.

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Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions