Escrow is a neutral third-party process that ensures all parties fulfill their obligations under the agreement. The title company or escrow agent acts as the middle person. They collect the documents, coordinate signatures, manage funds, and confirm the legal transfer of ownership.
In short, escrow is where the deal gets closed. It's a critical part of making sure the transfer of ownership is smooth, secure, and properly documented. Without escrow, both buyers and sellers would be at greater risk of miscommunication, delayed funds, or even fraud. According to the Florida Realtors Escrow Law Guide, escrow is a regulated process that helps ensure real estate transactions are fair and transparent.
What Happens During Escrow?
Here’s a step-by-step of what typically happens once a land sale goes under contract:
1. Opening Escrow
Once UNITY and the seller agree to a contract, the file is sent to a title company. This officially "opens" escrow.
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What UNITY does: We send the signed agreement and seller contact info.
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What the title company does: Starts the title search and creates an escrow file.
2. Title Search & Review
The title company investigates the property’s ownership history. They're checking for liens, back taxes, HOA dues, or title defects. According to Nolo’s guide on land closings, this is a crucial part of confirming a clean title transfer.
Your talking point: "The title company makes sure everything is clean so the buyer knows exactly what they're getting."
3. Gathering Documents
This includes IDs, deeds, affidavits, and anything specific to the property (HOA forms, survey info, etc.). UNITY helps the seller provide this info, and the title company manages document prep. In many Florida transactions, sellers may also need to provide FIRPTA forms, property disclosures (if required), and additional county-specific affidavits.
4. Issue Resolution (If Needed)
If the title search uncovers issues, UNITY will try to work with the seller and title company to resolve them. Common issues:
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Liens or unpaid taxes
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Ownership disputes
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Incomplete probate
We may also use tools like estoppel letters to verify HOA standing, or work with municipalities to settle any utility or code violations. If these can't be resolved in time, the sale may be delayed or canceled.
5. Closing Day
The seller signs their documents (often remotely or via mobile notary). The buyer funds the deal. The title company confirms everything, disburses funds, and records the deed. Once this is complete, the sale is official and recorded in county records.
6. Post-Close Follow-Up
UNITY receives confirmation, final copies, and may send thank-you follow-ups or additional documentation (especially in referral or repeat-seller cases). Sellers should keep a copy of the settlement statement for tax purposes.
Common Seller Questions (with Answers)
Q: Do I need to be at a closing office?
A: No. Most sellers can close remotely with a notary. UNITY helps coordinate everything.
Q: Who pays for escrow or title fees?
A: UNITY covers most standard closing costs, but some charges like HOA estoppels or specific county fees may be the seller's responsibility.
Q: How long does escrow take?
A: Most closings take around 30 to 45 days, depending on the property’s title status and the responsiveness of third parties like HOAs or municipal offices.
Q: Can I back out during escrow?
A: The contract terms will determine this. If UNITY discovers title issues or unexpected costs, we may also cancel or revise the offer. The same applies to sellers, who should review contract cancellation clauses carefully.
Q: Is escrow required by law in Florida?
A: While escrow isn’t technically required by statute in all cases, it is standard practice and strongly recommended for protection and compliance. Read more on ACTitle’s Florida Escrow Overview.
