Final answer:
In an escrow closing, all settlement services are handled by a closing agent. This includes executing and recording documents and managing funds. Escrow can also refer to an account where home insurance and property taxes are held and paid.
Step-by-step explanation:
When it comes to escrow closing, there is a specific protocol that typically takes place. Escrow is a legal concept where a third party holds something of value, often money until a particular condition has been met, like the transfer of property ownership. In real estate, escrow ensures the transaction is fair and secure for both the buyer and seller.
Regarding what is true about an escrow closing, the correct answer is (a) All settlement services are handled by a closing agent. A closing agent is responsible for overseeing the escrow process during a real estate transaction. They make sure all documents are properly executed and recorded, and that all funds, including down payments and closing costs, have moved to the correct parties.
Escrow can also pertain to an account where home insurance and property taxes are held. In the context of a mortgage, lenders often require that payments for these expenses be included as part of the homeowner's monthly payment. This means the lender will add a specific amount for taxes and insurance to each payment, then hold these funds in an escrow account to pay the bills when they are due. This is designed to simplify budgeting for homeowners by consolidating these expenses into a single monthly payment.
It's important to note that neither the listing agent (option b), the buyer and seller (option c), nor the attorneys (option d) are required to handle all settlement services in an escrow closing. Their involvement may vary depending on the local customs and practices of the real estate market in question, as well as the specific details of the transaction. However, it is not an absolute requirement for them to handle all aspects of closing, as that is the closing agent's responsibility.