Michele Buckman has put together some videos discussing the current DC market and what the future may hold for the real estate market in the Washington DC area.
When first time homebuyers are ready to purchase a home in the Washington DC area, many have questions about not only buying a home but also about what escrow is. Simply put, escrow, or placing something in escrow, is a deposit of money, property deed or other valuable asset by the purchaser that will be transferred to the seller when conditions are met. Think of it as a security deposit to hold the real estate until the sale and mortgage are completed.
Escrow is important when buying a home in Chevy Chase, MD because all parties involved in the sale - the buyer, seller and mortgage lender - want assurance money will not change hands in the real estate transaction until all conditions of the transaction have been finalized and followed. The holder of the escrow is required to protect the funds or other documents during the duration of the real estate transaction, as well as disburse the money or deliver the document when all stipulations have been met and the real estate contracts are final.
The basic design of an escrow arrangement includes the buyer, seller, lender and borrower (typically the same person as the buyer or the person buying a home). Each individual is responsible for providing clear and accurate information to the real estate broker or agent, who then provides the information to the escrow officer. The escrow officer processes the escrow and once all of the legal transactions have been completed, he will close the escrow and complete the real estate transaction.
The right to choose the escrow holder is legally left to the principals of the sale, but traditionally, the seller's real estate agent or broker recommends an escrow holder. If the person buying a home in Northwest Washington DC is uncomfortable with the escrow holder recommended, he does have the right to request a different escrow holder. Most states have laws preventing the payment of referral fees by escrow holders, to protect the integrity of the real estate transaction.
For answers to your questions when buying a home in the Capitol Hill or Trinidad neighborhoods, or anywhere in the NW DC area, contact Michelle Buckman at Buckman Realtor. Serving all of the Washington DC area, Michelle brings knowledge, experience and expertise to the Washington DC real estate market.