What is a real estate closing?
A real estate closing is the final step in the home buying or selling process. During a closing, the buyer formally purchases the home by issuing a check to the seller at the agreed-upon purchase price. The seller transfers the deed to the buyer and the title company registers the new deed with the appropriate governmental agencies. When the closing is over, the transaction is complete.
Do I have to have an attorney to buy or sell a home?
You are not required to retain an attorney for real estate transactions under Illinois law. However, failing to do so puts you at risk of the transaction falling through. You can also lose a significant amount of money and possibly even face a lawsuit. An attorney is the only professional who can help you mitigate or eliminate those risks. To do that, an attorney will review the contract, deed, and title to ensure that a clean title is transferred and that you are able to sell or buy your home without issue.
What is an escrow account?
An escrow account is an account where money is held by a third party for the benefit of the buyer or seller.
Why is an escrow account used?
Escrow accounts are used to protect the buyer’s money in the event that the seller does not fulfill his or her contractual obligations. They also hold the buyer’s property tax and insurance money for the duration of the mortgage loan.