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Escrow and what the account means to the homeowner
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[QUOTE="Holicent, post: 283091, member: 76163"] An escrow is the third party agreement between the buyer and seller. It is a legal document that requires both parties to adhere to its terms and conditions. The escrow is usually the biggest expense for a home buyer. The average cost of an escrow ranges from 2% to 5% of the total sale price, depending on the type, location, and size of the transaction. The homeowner needs an escrow because it serves as a guarantee that both parties will be held accountable for their actions. If one party fails to pay their share of the agreed upon settlement, then it will be held in escrow until both parties agree on how or if their payments should be made (e.g., through cashier’s check). In this way, it ensures that both parties are treated fairly and equally during negotiations regarding price, closing date, and other details related to purchasing a home. [/QUOTE]
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Escrow and what the account means to the homeowner
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