Buying Horse Property around the Willamette Valley of Oregon
Escrow, Title and Closing for Acreage and Horse Property
These are terms that people hear, but don't always know how to define them. Since these activites are not part of most people's everyday life, looking them up in a dictionary isn't at the top of our priority list. After all, we have horses to ride!
Escrow is a transaction where one person delivers something of value to a third person, to be held until the happening of a specific event or condition, upon which it is then delivered by a third person to another. Both parties to a real estate transaction entrust legal documents and money to the escrow holder, which transfer the papers and fund upon the closing of escrow. As a neutral third party, both buyer and seller are assured that all mutually agreed to terms are met before the transaction is completed.
When escrow is opened, a title search begins. Title officers are searching for unpaid taxes, liens, judgements, easements and other recorded documents that can effect the title to the home you want to buy. In Oregon, the seller is required to provide title insurance to the buyer. This will protect you from most unrecorded issues.
This term probably gets misused the most. When the transaction is complete, loan documents are recorded and the funds have been dispursed, closing has occured. Depending on the terms of your contract, you may get your new keys the same day or a few days later. If you take possession prior to closing, you made need to sign a rental agreement with the seller.