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Escrow and Settlement
You may need an escrow or settlement company to
act as an "independent third party" between you and the seller. Without
having a third party involved, how do you know that when you fork over the
money, you are going to get the deed? This is the type of service provided
by escrow and settlement. They will hold your deposit and coordinate much of
the activity that goes on during the escrow period.
Since this third party is
very important to both you and the seller and you will both pay fees to this
company so it is important that you and the seller agree on which service to
use. Therefore, your choice should be included as part of the offer. Since
you do not buy a home every other week or so, you are probably unfamiliar
with companies that provide this type of service. Your real estate agent
will typically a recommendation of whom they are familiar with or use
regularly. You will have the authority to accept or decline the
recommendation and include it in your offer, or make your own selection of
who to use.
Keep in mind that the seller
will also share this right and may have another preference and this may be a
included as a point of negotiation in a
counter-offer. It is customary that one side will choose the
escrow/settlement agent and one side chooses the title insurance company.
Always remember everything in real estate is negotiable. |
