Escrow Accounts in the Long Beach Island New Jersey Real Estate Market
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Long Beach Island Real Estate
There are many different types of escrow accounts in the Long Beach Island, New Jersey, real estate market. Each escrow account has a vital role to play and should be fully understood by all buyers and sellers. In short, an escrow account is a type of bank account that is used to hold funds and is managed by a third party (not the buyer or seller in the transaction). The most common types of escrow accounts in the LBI real estate market are maintained by a real estate agency, a title company, an attorney, or a lender.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Escrow Account
One of the first times a buyer or seller in the LBI real estate market will encounter an escrow account is when an initial deposit has been paid to purchase real estate. Usually, this money will go to either the real estate agent (to be held in the broker’s escrow account), the title company, or the attorney. Every real estate deal is different, and who retains this money will depend on the terms of the real estate sales contract. The funds will be held in an escrow account until the terms of the agreement are fulfilled. Escrow accounts will also come into play for more real estate transactions that involve a mortgage. Typically, a bank will hold a reserve of funds for certain predictable expenses such as property taxes, homeowners insurance, and flood insurance. The bank will allocate a portion of a monthly mortgage payment to be paid and held in an escrow account until the bill needs to be paid. There are many different applications for escrow accounts in the LBI real estate market, and understanding them is an essential part of a successful real estate transaction.
Escrow Accounts in the Long Beach Island New Jersey Real Estate Market
As a real estate agent, I cannot give legal advice, so all buyers and sellers should consult their attorney to understand the rules and protections of an escrow account. For example, escrowed funds in a real estate brokerage account cannot be “co-mingled,” meaning they cannot be used to pay the bills of the real estate company. An attorney can walk you through all the steps, rules, and regulations surrounding escrow accounts and buying or selling a home in the Long Beach Island real estate market. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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