If you’re thinking of buying property in Maui, there are a few things you need to know about the escrow process. Escrow is a term used in the real estate industry to describe the process of holding money and documents until a transaction is complete. Here we will explain what happens during escrow and how it can help protect both buyers and sellers.
What is Escrow?
An escrow is a third-party account set up to hold funds during a real estate transaction temporarily. The escrow agent is responsible for keeping and managing all money and documents related to the sale and ensuring everything is in order before the keys are exchanged.
How Does Escrow Work?
The escrow process can vary slightly from state to state. Still, typically, the first step in setting up an escrow is for the buyer and seller to agree on a price for the property. Once this is decided, the buyer will deposit earnest money into the escrow account. This deposit shows that the buyer is serious about buying the property and will be applied towards their down payment at closing.
Once earnest money has been deposited, both parties will sign a purchase agreement outlining all the sale details. This contract will be sent to the escrow company, which will order a title search on the property.
A title search ensures that there are no outstanding liens or claims against the property that could prevent the buyer from obtaining clear ownership.
The escrow company will also handle all the paperwork related to the sale and coordinate with all parties. This will ensure that everything is moving forward as planned.
Once everything is finalized and all documents are signed, the keys will be handed over to the buyer, and ownership will be transferred.
Ready To Buy A Home In Maui?
So, if you’re considering moving to paradise, don’t let the escrow process deter you. With a bit of preparation, you’ll be ready to take advantage of all that Maui has to offer.
Give us a call today to get more information on the home-buying process in Maui. Aloha!