What About My Escrow Deposit?

If you prefer you can watch the video explanation above. However the article will have more information. After you submit an offer on a home here in Tampa FL typically you will have 3 days to place an escrow deposit with the title company. The escrow may be held by someone else but typically it is held by the title company in Tampa.

The Process Of Closing On A House

What Is Escrow?

It is easiest to look at escrow as part of the overall purchase price. If you buy a home for $400,000 and place $4,000 into the escrow account you now owe $396,000 plus closing costs etc. The escrow is necessary as both a show of good faith and some legal issues I should not explain because I am not an attorney. I will say this though, if you have not been through some heated escrow disputes you know nothing about real estate yet. 

Who Holds The Escrow?

Most people will be using the "As Is" contract to purchase their Tampa home. On the first age of this contract it has a place for the title company's contact information. You absolutely will be needing this information if you are the buyer and your offer is accepted. Believe it or not I have seen experienced realtors leave it blank.

Types Of Title

As soon as you can after the seller has informed you they have accepted the offer (signed it) reach out to the title company. A good realtor will send the buyer and the title company a joint email containing the entire contract after it is signed. This email also serves to connect the buyer with the title company and escrow office. The buyer should receive an email with information on how to transfer the escrow deposit. Make sure the email comes from a company email address and most likely the one on the front of your contract which is for the title company.

How Much Time Do I Have?

Normally you will have 2-3 days to transfer the escrow to the escrow holder/ title company. These are calendar days, not workdays. The only twist is the last day has to end on a work day to assure the buyer has the time to make the deposit/ transfer. If the final day is on a Sunday or Holiday I usually will just ad one or two days to make sure it is clear that the final day is on a business day. Everyone typically understands this being done.

Final Note 

You should always try to place as little escrow as possible if you are the buyer. 1% is a really good number. Most of the time it is promptly returned to the buyer if the property fails the inspection and the contract is cancelled. Title will want a notice of cancellation and life goes on. However if you are past the inspection period and you end up in a escrow dispute life is miserable. It does not go as smoothly as the buyer or seller believe that it will. Do the right thing and respect the contract. We hope this helps you understand just a little more about escrow deposits.