Title & Escrow

Title and escrow are two important components of the mortgage process that help ensure that the property ownership is transferred properly and that the transaction is handled securely.



Title refers to the legal ownership of the property.  A title search is conducted to determine if there are any liens or claims on the property that could affect the transfer of ownership to you. A title company performs this search and a title company is typically where you sign all your loan documents for funding.


Escrow refers to the process of holding funds or documents in a secure third-party account until certain conditions are met. An escrow account is often set up by the lender to hold the borrower’s funds for property taxes, homeowners insurance, and other related expenses. The borrower contributes a portion of their monthly mortgage payment to the escrow account to cover expenses such as property taxes, homeowners insurance and in some cases mortgage insurance. This helps ensure that the property taxes and insurance are paid on time and that the property remains adequately insured.

At closing, the title and escrow processes come together.

The title company ensures that the title is properly transferred to the borrower and that all liens and claims are satisfied.  The escrow agent handles the transfer of funds between the buyer and the seller, collects and disburses funds for closing costs and fees, and ensures that all necessary documents are signed and recorded properly. Once all conditions are met and the transaction is complete, the property ownership is transferred to the borrower, and the mortgage process is complete.  You are now a homeowner!

What Does Close Of Escrow Mean?

Close of escrow, also known as the settlement or closing, refers to the final stage of the real estate transaction when the buyer, seller and all participating parties have fulfilled their legal responsibilities to one another.

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