Unpacking Escrow Requirements in Destin, FL: A Beginner’s Guide for Homebuyers
Buying a home in Destin, FL, is a huge financial commitment. It can also be the largest one you’ll ever make. That’s why it’s essential to know everything about it, including the escrow requirements in Destin.
Escrow requirements may differ from those in other states. So, whether you’re a first-time or a seasoned homebuyer, it’s essential to understand its basics. Keep reading to learn more about Destin’s escrow requirements.
Escrow Requirements in Destin, FL
Written Agreement
According to Florida law, the landlord and tenant must write a rental agreement and give it to the tenant in person or by mail. This contract should show what each person has to do. Also, an escrow account must be with a Florida bank, savings, loan, trust company, or another institution.
Licensed Escrow Agent
Homebuyers in Destin, FL, can use a licensed escrow agent to protect their real estate transaction. These agents keep the money safe by putting it in a trust or insured escrow account with qualified institutions. In addition, escrow companies must follow all laws and keep their licenses up-to-date, giving homebuyers peace of mind.
Written Escrow Instructions
In Destin, FL, the agent asks for written instructions from all parties that explain when to release the money. Everyone must sign these instructions. They must also be clear enough so that everyone understands the escrow arrangement.
Deposit Amount
Destin, FL, homebuyers must indicate the deposit amount in their written escrow instructions. The buyer and seller agree on this amount, usually a percentage of the sale price. It also assures the seller of the buyer’s commitment, providing a smooth transaction.
Timeframe for Release
The written escrow instructions must state the conditions and timeframe for fund release. These criteria may include conducting a home inspection or renovation work.
Interest on Deposits
If the deposit is held for over 90 days, both parties must agree on how to distribute the interest. Doing so ensures both parties know about potential interest and where it goes.
Disbursement of Funds
The escrow agent can only disburse funds written to make sure the money is given when the sale requirements are met, and the agent disburses the funds as the instructions require.
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