A couple of years ago I sold a house and carried the papers. The buyer is re-financing and paying me off. The title company wants me to sign the release prior to closing and they will hold the release in escrow until I have received the funds. Does anyone have experience escrowing documents? Is there usually an escrow agreement? If so, what do I need to make sure is in that escrow agreement?

I check to make sure the escrow company is licensed and bonded. Then I get written terms for the release of the debt, mortgage pay-off. That the escrow and/or title company has to guarantee that they hold the funds payable to you first before filing the loan is paid off in full.

Sometimes this means the person paying off the loan has to:

a) wire transfer the funds

b) provide a cashier's check the day or two before the filing.

I trust no one.... just my nature regarding what I've seen in real estate transactions over many years.

Tim,

Been there. I sign a release AFTER the funds have cleared MY bank.

MANY closings are delayed or have errors. Too many things go wrong.

About 35 years ago, I would participate in Closings. Everyone would sit down in an office conference room and pass around the documents to make sure everything was in order. [All documents were pre-signed and notarized, but not yet exchanged.] Once everyone was satisfied, and the tax prorations agreed up, everything was exchanged. Razorback would hand over the mortgage reconveyance and would be given a cashier's check for payment in full. The Seller would hand over the Grant Deed. The Buyer would hand over the new Mortgage. The Bank would hand over the various checks -- to Razorback, to the Seller, to the Title Company, etc.

Now, in reality, there usually were not a dozen people in the conference room. There were usually just two attorneys. Unlike Nicole, the people invoved trusted that the attorneys were not going to risk losing their licenses for fifty thousand dollars (or whatever houses were going for in those ancient days). The Bank trusted the Buyer's attorney with the various checks that were needed. The mortgage holder trusted whichever atty he gave the Reconveyance to. It all worked out very nicely. If any of the attys involved ever had a smidgen of doubt about his integrity, he would have no longer been involved in real estate transactions.

But sometimes, especially with first-time buyers, there would be that crowd celebrating the exchange of documents, checks, keys, etc.

ah Mike, you misunderstand what I don't trust !!! I absolutely trust my attorney and what you are talking about is exactly what I do trust and how I also conduct my personal business.

It's as simple as 1-2-3.

You give me the money, I give you the papers...AT THE SAME TIME.

And oh yeah, make sure the one who's doing the swapping (the escrow company) is licensed and bonded.

Tim

Thanks for everyone's input.

Tim That is kind of what I did the time I came by and had lunch with you. You remember the little piece of dirt in Pine ville that I sold.

Great Am. Title did all the work. Had everything done and ready for the signing. Buyer had come in a few minutes earlier and signed everything and then when I got there I signed the papers and title company handed me their check. They had wanted to do everything over the air waves (internet) but I told them the drive was good for me and I could see and touch the papers when I got there. Took all of about 20 minutes.

A while back I sold another property out of a lawyer office in St Louis. I told them to have everything ready and I would stop in and do my signing. I feel face time is important. Sure, it was a little drive (250 miles) but walking out of lawyers company with their check in hand just made me feel better than waiting for the mail person.