If you are interested in purchasing a home in the state of Florida, you will understand that it is no simple undertaking. Buying a home is likely going to be the biggest purchase you make in your life; therefore, it is important that you do it right.
Many people going through the real estate transaction process are confused by the role of escrow companies and how they help the buyer. It is important that you have a full understanding of all aspects of the real estate transaction before you go through it so that you can remain in control at all times.
Understanding the role of escrow
Since the details surrounding the purchase of a home can be very complex, a third party in the form of an escrow company or agent can get involved. They will oversee the entire transaction process on behalf of the lender. This protects all parties, making sure that the down payment is secure in their hands until the transaction is closed. They will also be responsible for transferring the purchase value to the seller when the transaction is closed, and they will also make sure that the deed of title is transferred to the buyer.
Who chooses the party to handle escrow?
Usually, it is the job of both the buyer and the seller to jointly agree on the escrow agent. The escrow agent could be an insurance company, an attorney or an escrow company.
If you are going through the process of buying a home in Florida, it is important that you understand the intricacies of the law. An experienced attorney can help you learn more about real estate transactions.