When buying a home, it can be overwhelming to understand the many steps involved. One of those steps is escrow, an arrangement between a buyer and seller. It helps ensure that both parties meet all the conditions of the sale before the title is transferred. An escrow notary plays an important role in this process and offers several advantages for home buyers. Here's a closer look at what an escrow notary is and why they are essential to your closing.
What Is Escrow?
Escrow is a financial arrangement where funds or property are held by a third party until all conditions of the contract have been fulfilled. It ensures that the buyers have paid for their purchase in full, the mortgage is funded, and the sellers deliver what was promised in the sales agreement. The money or property will remain in escrow until all these conditions have been met.
What Is a Notary?
A notary, or notary public, is an official witness who verifies documents and identities on behalf of two parties. They swear in witnesses at court hearings and authenticate signatures on legal documents like mortgages or other agreements related to real estate transactions. Notaries play an important role in ensuring that no fraudulent activity takes place when exchanging large amounts of money or other valuable items between two parties.
What Is an Escrow Notary?
An escrow notary is a notary that specializes exclusively in real estate transactions, including:
- Loan modifications
- Short sales
- Deeds-in-lieu of foreclosure
They make sure all documents are properly filled out prior to closing so there won't be any delays when transferring ownership from one party to another. Depending on where you live, an escrow notary may also administer oaths during closing.
Why Is an Escrow Notary Essential at Closing?
An escrow notary at closing helps coordinate all aspects of the transaction, including:
- Verifying funds and ensuring that paperwork has been completed correctly by both buyer and seller.
- Ensuring all necessary documents are filed with local governments so ownership can be officially transferred from one party to another without any issues arising later.
- Providing extra protection against fraud by verifying identities and signatures on various documents throughout the entire process.
By having an experienced professional oversee your real estate transaction from start to finish, you can rest assured knowing everything has been taken care of properly, eliminating any potential issues should something go wrong with either party's finances after closing. Ultimately, having an escrow notary gives you peace of mind knowing everything has been taken care of correctly. With their help, you can rest easy knowing your rights and interests remain protected during the final step in your journey to homeownership.
Contact a local notary service, such as NB Notaries LLC, to learn more.