Understanding How Escrow Is Used In Real Estate
Escrow is the legal term for when a third party, usually your lender, is holding your money in order to pay another party. Escrow can be confusing for both real estate buyers and sellers, which is why having a lawyer on your side is important for any real estate transaction. At Blackacre Law LLC, our attorneys can explain the basics of escrow and what it may mean for you when buying or selling real estate.
The Purpose Of An Escrow Account
An escrow account is designed to simplify the process of paying the required expenses needed to keep your home. Without an escrow account, you would be responsible for making separate payments for things such as property taxes and homeowners insurance, in addition to your monthly mortgage payment. Instead, your lender will make these payments on your behalf, the cost of which is incorporated into your monthly mortgage payment. This explains why a mortgage payment cannot be calculated based on the sale price of a home on its own.
If you are selling your home and have money left over in your escrow account, that money will be returned to you immediately, without the waiting or approval process required by other states.
Contact Us For All Of Your Real Estate Law Needs
If you have questions about escrow accounts or any other type of real estate law matter, call our law offices in Greenville at 864-775-5400. You may also schedule a consultation by submitting our online contact form.