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11.2
SELECTING
SERVICE PROVIDERS
Escrow
and settlement
For example,
you are going to need an escrow or settlement company to act as
an "independent third party" between you and the seller. Without
having a third party involved, how do you know that when you fork
over the money, you are going to get the deed? This is the type
of service provided by escrow and settlement. They will hold your
deposit and coordinate much of the activity that goes on during
the escrow period.
Since this
third party is very important to both you and the seller and both
of you will pay fees to this company, it is important to agree on
which service to use. Therefore, your choice should be part of the
offer. Since you do not buy a home every other week or so, you are
probably unfamiliar with companies that provide this service. Your
agent will make a recommendation. You have the authority to accept
this recommendation and include it in your offer, or make your own
choice.
Keep in mind
that the seller will also have a preference and this may be a point
of negotiation in a counter-offer. It has become customary that
one side will choose the escrow/settlement agent and one side chooses
the title insurance company. Even so, everything in real estate
is negotiable.
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