WHAT EACH PARTY DOES IN ESCROW

Settlement Agents work from specific instructions provided by buyer and seller. Throughout the country, the settlement process differs, but the role of the settlement agent remains the same. Depending on local custom, the escrow settlement agent may work from the purchase and sale agreement and any loan escrow instructions provided, and/or separate escrow instructions prepared at the direction of the principals to the transaction.

Instructions are written documents, signed by the parties giving them, which direct the settlement agent in the specific particulars of the transaction. The settlement agent follows those to insure the proper steps are completed so the escrow can be closed.

The role of the parties, in escrow, is simple:
  • Instructions must dictate the method by which the settlement agent is to receive and hold the purchase price to be paid by the buyer.
  • The conditions under which a lapse of time or breach of purchase contract provision will terminate the escrow without a closing.
  • The instruction and authorization to the settlement agent to disburse funds for recording fees, title insurance policy, real estate commissions, and any other closing costs incurred through escrow.
  • Instructions as to the proration of taxes, rents or association dues, as applicable.
  • Instructions on the payment of prior liens and charges against the property and distribution of the net sale proceeds.
  • Most parties have their own counsel (Attorney representative), which Paxin Closing and Escrow, LLC works hand in hand with.
Since the settlement agent can only follow the instructions, as stated, and may not exceed them, it is extremely important that the instructions be stated clearly and be complete in all details.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

About Sam Paxin

Sebastian Sam Paxin has over 20 years experience and is one of the most trusted names in GA Real Estate Law.

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