When selling or purchasing your next home in the State of Oregon it’s a wise choice to choose a neutral third party to handle the transaction. This neutral third party is called an Escrow Agent. Both parties to the real estate transaction entrust legal documents and various funds to the Escrow Agent, which transfers the papers and funds 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.
 
The authority given to the Escrow Agent is strictly limited by instructions provided by the buyer and seller (sales contract). The Escrow Agent is authorized by instructions to allocate funds for items during the escrow period, such as real estate commissions, title insurance, liens, recording fees and other closing costs. Instructions also specify the method of collecting funds, proration of insurance and taxes and time limitations of settling the transaction. The escrow process protects all parties involved by retaining money and documents until the instructions are met.
Submitted by Tammy LeMaire