Escrow Services Annapolis, MD
What is Escrow?
Escrow is a neutral third party who holds the keys, title, and money until the time of closing, so everything is exchanged safely, fairly, and simultaneously.
You don’t want to pay the seller of a home until they are ready to hand over the keys and ownership, right? As the owner, you wouldn’t think of handing over the title to your property and keys until you get paid, right? An escrow services company in Annapolis, MD is the key to making sure no one gets shortchanged in the process and ensures you’re properly putting money in escrow. At Capitol Title Group, we provide an efficient and affordable experience for our valued customers. Over our decades of operation, we have been recognized as one of the leading settlement companies with an exceptional record of customer satisfaction.
The Pros, Cons and Best Practices for Escrow
Each party is typically looking out for their own interests in a real estate escrow transaction. If a biased party controls deposit money, it can be harder to get your hands on it if the deal falls through. For this reason, listing brokers would rather hold the escrow money, and buyers agents would rather hold the money too. Too often this can end up with the funds being whisked away to the first party who claims them in a dispute. As a buyer it is always safer and smarter to have a third-party escrow services company in Annapolis, MD hold your funds. It dramatically increases your odds of getting them back if needed.
One of the potential cons for buyers at closing is the impact on cash required to complete the close of escrow, because of impounds for property taxes and insurance coverage. Depending on what day and month you are closing, the escrow officer will collect several months’ worth of payments to ensure these bills are paid. You can talk to your escrow officer about how to minimize this amount and the impact on cash due at closing.
As a buyer, seller, and agent, you should receive a copy of the Closing Disclosure, three days before the closing is scheduled. Make sure you review it carefully, ask questions until you understand it, and ensure all funds needed to close are liquid and available.
Is escrow safe?
Escrow is generally a very secure process. However, one of the biggest risks in this process today is wire and escrow fraud. Hackers and cyber criminals have been increasingly targeting real estate agents and their clients due to the large sums of money in escrow. They will often hack and spoof email accounts, sending fake wire instructions for hacking bank accounts. Be sure to triple check where money should be sent directly with your escrow officer through a trusted line of communication, prior to sending. Our escrow services in Annapolis, MD officer will help you transact in the most safest way possible.
The whole process of signing physical documents, wiring money, and holding money for days or weeks during the process is outdated. New technology, electronic signatures, online money transfer systems and blockchain, for instantly recording a sale and transfer of an asset will all help modernize, speed up, and secure the process of buying and selling real estate. As these things become integrated in the industry, make sure you do your homework and select a title and escrow company with a good reputation and who will work on your behalf in the transaction.
What You Should Know About the Escrow Process
Start Your Escrow Account
Your first task after you have signed your purchase agreement is to search for escrow services in Annapolis, MD. Once you start your account, you give your agent a deposit that covers the amount agreed on in the purchasing agreement. Your escrow company also collects any documents and any additional funds required for closing.
Gain Financing
You may have gotten pre-approved for your home loan, but if you haven’t you will now secure your financing. Your mortgage company will conduct an appraisal to ensure that your future home is worth what you agreed to pay. This reduces your bank’s risk in the case of foreclosure. Properties that appraise at lower than the purchase price will not receive full financing from your bank. Either you need to renegotiate the price or you have to pay the difference out of pocket. You can fight the appraised value by providing additional information about the home or getting a second appraisal. You can also pursue financing from another lender.
If your loan is approved, you will then discuss the terms, including interest rate, closing costs and other fees. Then, you sign a loan commitment and negate the financing contingency in your offer in writing.
Pay for an Inspection
Most mortgage companies require an inspection before they finance a mortgage. Your inspection will reveal any dangers or repairs that need to be addressed. If the inspection comes back with costly damages, you can request that they be fixed or the sale price be lowered so you can fix them. However, you can also back out of the sale.
Your inspection should include pest, plumbing and electrical, environmental and geologic inspections.
Work with Your Title Company
Next, you will work with a title company, such as Capitol Title, to purchase title insurance and have your title searched. You will typically use the same company from which you purchased escrow services in Annapolis, MD. This process involves a search to ensure that the property does not have any outstanding liens. If any clouds are found, they can then be addressed by the title company.
Close on the Property
After you complete a final walk-through, you will work with your title company, e.g., Capitol Title, on closing the loan. Closing requires that you sign a significant amount of paperwork. Then, an officer with your escrow services in Annapolis, MD will create and send your new deed to the county recorder. Your down payment and closing costs are due at this time, and your escrow funds and loan amount are sent to the seller. Then, you are legally allowed to possess your home.
We welcome the opportunity to serve you in our escrow service in Annapolis, MD. Contact us today.
Capitol Title has provided settlement services for clients since 1973. Many of their clients appreciate the value and assurances that a lawyer owned, service oriented company may offer, especially when it comes to their escrow services offered in Annapolis, MD. Their staff is experienced and professional, from the lawyers that they employ to the settlement officers and coordinators. Capitol Title conducts settlements in the thousands every year, which involves properties in Maryland, the District of Columbia and Northern Virginia.
One of the main goals of this company is to ensure they are prepared, professional and accessible. Each person at Capitol Title will listen to you and strive to understand and assuage your concern. They are experienced enough to recognize your specific needs and respond to them in kind. Their practice is distinguished by their record in achieving the objectives set above and has earned them a favorable reputation in the real estate community. They are committed to excellence and this has been rewarded by successful growth in their client base.
But you might be wondering just what escrow is and what escrow services are for. Escrow is the legal concept that describes a financial instrument where an outsider escrow money is held by a third party, oftentimes this money is held because two parties are involved. This is typically true of the people being involved having a transaction of sorts.
Escrow accounts can include escrow fees that are managed by agents or will the funds or assets until they have received the appropriate instructions or fulfillment of predetermined contractual obligations have been met. Money, securities, minds and even other assets can be held in escrow. Escrow is often a replacement for a cashier’s check.
Escrow is a process that is used when two parties are more in the process of completing a transaction and there may be uncertainty over whether one party or another is going to rebuild her obligations.
The types of escrow are real estate, stock market, and online sales. Escrow accounts and services can apply to real estate transactions, which is where you will place the funds allowing the buyer to perform due diligence on a potential acquisition. Escrow accounts in this manner assure the seller that the buyer can close on the purchase, if there are conditions attached to the cell such as the passing of an inspection or something else that might not be met, the buyer and seller may agree to use escrow.
In the stock market stocks are issued in escrow, so while the shareholder is the real owner of the stock, the shareholder has limited rights when it comes to the disposal of that.. So if you’re an executive who receives stock as a bonus to your compensation, you must wait for an escrow. To pass before you can sell that stock.
Online escrow much like real estate and stock market escrow protects the buyer and seller from fraud or nonpayment. The online platform acts as the middleman for online product sales, which means that the buyers and the money to an escrow service and they hold the money until the product has been received. Once that product has been received and is verified the provider will release the funds to the seller.
If you need an escrow service in Annapolis, MD you should reach out to Capitol Title today.
Property Ownership
Owning your own property is both exciting and a huge responsibility. There are many issues that can come up that you need to stay on top of. Knowing what rights you have is also critical when these issues do come up. Keep in mind, however, that when you hire an Annapolis, MD escrow services company, there are many other services available to you besides just assisting with escrow. At Capital Title Group, we are here to meet many of those needs.
What Are Your Rights as a Property Owner?
A property owner has a variety of legal rights, including the right of possession, right of control, right of exclusion, right to derive income, and right of disposition. These rights do have legal obligations (such as taxes), as well as limitations and exceptions.
These rights vary from state to state and they may also be subject to federal laws, as well. It is critical to know what these legal rights are in order to protect your property from encroachments, intrusions, and other issues.
Title Documents
There are a number of property documents that can contain critical information regarding the property. Every property owner should familiarize themselves with these documents. The “legalese” and language in these documents can be difficult to understand to a layperson, it is in the owner’s best interest to have at least a basic understanding of what their rights and obligations are. An Annapolis, MD escrow services company can help with not only obtaining these documents but also in understanding them.
Some of the most critical of these documents include the following:
- Deed – This document shows title and exceptions (i.e. easement)
- Deed of Trust – This document shows how the property has been mortgaged, liens, etc.
- Boundary and land survey documents
- Master plans
- Zoning maps
Understanding What Title Documents Should Contain
Every property deed represents the transfer of ownership of the property between one party to another. The deed is required to have both the seller’s information (the grantor) and the buyer’s information (grantee) and a full description of the property.
The title documents should also include any restrictions there are to the property, any defects that may exist, and any other exceptions to the title that may have an impact on the property.
Our Company Is Here
Whenever you are considering purchasing a property, it is critical to make sure that all title documents are legally sound. A defect in the title, previously undisclosed issues, questionable past transactions, liens, easements, rights of way, and other issues can all have a detrimental impact on whatever plans the owner may have for the property. Call Capitol Title Group, an Annapolis, MD escrow services company that can provide you with a variety of all of your property needs.
Escrow Services Annapolis, MD
If you are thinking about trying out truncated escrow services in Annapolis, MD then you need to know the facts. There are many misconceptions when it comes to what escrow services are and many people fall for them. It can be a complicated process but if you happen to want to know more then you are in great company.
We want you to be as comfortable as possible and have an understanding of what an escrow service is and how it can benefit you in the long run.
Commonly Misunderstood Facts About Escrow
If you are confused about escrow then know that you aren’t the only one. Here are the top misunderstood facts that you need to know:
- Popular but Not Limited to Real Estate
While escrow services are mostly used in real estate to facilitate the purchase and sale of highly valued properties it isn’t all it can do. It is popular here because it allows the buyer enough time to conduct a property inspection, title search, and read any disclosures while assuring the seller that the buyer is serious. However, that isn’t all that escrow can do. It can be used to facilitate transactions in law, banking, and even corporate transactions.
- Escrow Agents are Just Agents
These people are the ones that you’ll be assigned to and they oversee the third party account. However, that doesn’t mean they are attorneys. If you need an attorney then you will have to find one that works in the escrow field. While the agents can’t be partial, and they have to stay neutral throughout the process, they have no legal power. An agent is going to let you know when the seller accepts the offer and keep you posted.
- You Can Shop Around
You don’t have to settle for the escrow company that your real estate agent suggests. Many people do because they simply don’t know better. It isn’t every day that you deal with escrow, and you may not know what is best. You can shop around and find a company that suits your needs.
- Escrow is Not Time Consuming
It sounds like it would be. Many people assume that it is a time-consuming process because of what it is. The escrow company is only holding the money until both parties meet the predetermined obligation that is set down. Basically, this means that as soon as both parties agree then the process can move on. This can be a fairly fast process for most people.
- Title Insurance is Important
Many people find that title insurance is not needed. While it isn’t a must, it is often a good idea to have. Most people are never going to have to use it. When you go through escrow, you are putting money into an investment that is important to you. You want the process to go as smoothly as possible as well. Title insurance is just an extra step in making sure that you get the most favorable outcome possible.
If you are looking for escrow services in Annapolis, MD then you can rest assured that you are in good hands at the Capitol Title Group.