Escrow is protection for you—the fee you pay to have your transactions handled by professionals is “money in the bank.”
An escrow is an arrangement where a third party is given the responsibility of handling the details necessary for a real estate transfer. We prepare documents, clear title, exchange funds, process payoffs, and record documents for both parties. Our escrow company holds legal documents and funds on behalf of a buyer and seller, and distributes them according to instructions. The purchase is officially closed when the new deed is recorded; ownership is then considered transferred from the seller to the buyer.
Nelson Escrow Service works for your protection and convenience during the process. We strive to make this process as smooth and easy as possible. We clearly and effectively communicate with all parties involved to mitigate confusion and questions. By eliminating the guesswork from the transaction, we make the entire process pleasant and error free.
Whether you are a Buyer, Seller or Lender, at Nelson & Allen, P.S., our escrow team will protect you in your real estate transactions with our expertise.
For questions you may have concerning our Escrow Department, give us a call: 253-845-1120.
What types of transactions go through escrow?
Most contracts that involve the transfer, lease or financing of real or personal property can be placed in escrow. You may be involved in escrow when you buy or sell a home, mobile home, or even a small business.
Why do I need escrow?
Whether you are the buyer or the seller, you want assurance that no funds or property will change hands until all of your instructions have been followed. With the increasing complexity of law and tax structures, it takes a trained professional to supervise the transaction and ensure those instructions are followed.
Who handles the escrow transaction?
Our escrow officers are trained and experienced professionals. They can provide you with the assistance required to close your transaction quickly and effectively, under the terms of you instructions.
As a buyer entering into escrow, what must I do?
If the transaction is contingent upon a new loan, it is your responsibility to arrange this loan. Your real estate agent can be most helpful in obtaining a lender, since he or she is more knowledgeable about which lenders are currently active and their financing terms.
What happens at the closing?
When instructions of all parties to the escrow have been carried out, the closing can take place. All outstanding funds are collected at this time and all costs must be paid. Title to the property will then be transferred. All specified documents are recorded or filed at this time.
As a seller entering into escrow, what must I do?
To be fully prepared when you enter the transaction, you should have sufficient information relative to your ownership available. This would include information concerning any loans, taxes, insurance and, if appropriate, rental data.
If the transaction isn't completed, is my deposit refundable? Who pays the fees?
When a transaction fails to close, a cancellation agreement must be reached between the parties. This cancellation agreement must be put in the form of a written instruction. Since the deposit is part of the escrow contract, both the buyer and the seller must mutually agree to its disposition. Instructions for the disposition of this deposit should include, among other things, provisions for payment of charges incurred during the escrow. This would include fees and costs incurred by the escrow holder and charges such as loan processing and title insurance fees as specified in the escrow instructions.