1) Records the deed, and
2) Delivers to the Buyer a policy of title insurance which shows title to the property vested in the name of the Buyer.
The escrow holder is authorized to deliver the deed to the Buyer when the Buyer has deposited the agreed-upon purchase price and fulfilled any other conditions specified in the escrow instructions. The escrow holder handles the prorations and adjustments on any fire/hazard insurance, real estate taxes, rents, interest, etc., based on the escrow instructions of both parties.
The escrow holder thus acts for both parties and protects the interests of each within the authority of the escrow instructions. Escrow cannot be completed until the instructions have been satisfied and all parties have signed escrow documents. The escrow holder takes the instructions based on the terms of the Purchase Agreement and the Lender’s requirements.
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