ESCROW AND SETTLEMENT SERVICES

First we’ll define some of the basic terms.

ESCROW: Written instruments, money or other items which are deposited by one party with a depositary for delivery to another party upon the performance of a specified condition or the happening of a certain event.

SETTLEMENT SERVICES: Variety of functions which may be performed by the settlement agent in closing real estate transactions.  These would include sale and loan transactions as well as the performance of escrow responsibilities.

SETTLEMENT AGENT: May be referred to as Depositary or Escrow Agent. This should be a third, disinterested party who will preside over the closing.

CLOSING: Refers to the event when the performance of all conditions required for the exchange of instruments and money has been completed and the settlement agent is authorized to and does deliver instruments and disburses funds as instructed.

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