FAQ

What is an Escrow Company?

Buying a house can be a complicated process. Within the stages of buying and selling a home—from the offer to the home inspection and getting that mortgage approval—other actions must happen. One of those is the process of being in escrow.  The escrow company acts as a neutral third party to collect the required funds and documents involved in the closing process. An escrow account holds valuables, such as money, property deeds, and personal finance documents, on behalf of two agreeing parties until specified conditions are met during a financial transaction.

Simply said, an escrow account is a third-party account that holds a good faith deposit payment for the house, which eventually goes towards the downpayment of the house if the sale moves forward.

Depending on the reason for escrow, the escrow agent may be a title company that specializes in real estate, a bank or other financial institution, or a private individual entrusted with the role.

Premier American Escrow is an escrow company, specializing in Costa Rica real estate.

Key Takeaways

  • The escrow process occurs between the time a seller accepts an offer to purchase and the buyer takes possession of the home.
  • The first part of the escrow process is the opening of an account in which deposits and any other payments can be held.
  • The buyer must wait for bank approval, secure financing, get inspections completed, do walk-throughs, and go through closing.
  • The buyer may walk away from the agreement if conditions are not met or there is a problem with the property.

Source Investopedia

What are the steps to start the Escrow process with Premier American Escrow?

Generally speaking, each transaction follows the same steps:

  1. PAE will contact you via email to explain the process and send you all the info you need.
  2. You will need to fill out our KYC (Know Your Client) form and provide a copy of your current passport. You can do so via our Client Portal.
  3. Once we have the KYC and ID we will send a secure file that contains our wiring instructions for the earnest money deposit. The purchase contract details the date the deposit is due.
  4. A full escrow agreement will be sent and needs to be signed by all parties.
  5. Prior to closing, your attorney will provide the details of all closing costs and the balance of funds due. Funds for closing should be in the escrow account at least 48 hours prior to closing.
  6. PAE will provide a closing statement to finalize the transaction.

How to open an Escrow Account with Premier American Escrow?

Once buyer and seller agree on a price and sign a mutually acceptable purchase agreement, the real estate agent or attorney will connect the buyer with the Escrow company to initate the process. Buyers will need to submit certain documentation to open their escrow account and wire earnest money— a good faith deposit to confirm their intent to purchase the property.

Required documentation for Premier American Escrow clients:

  1. PAE Know Your Client (KYC Form)
  2. Passport Copy

When is additional documentation needed?

If the sale proceeds will be sent to Costa Rica we will need additional source of funds documentation for the bank. Your escrow agent will inform you if this will be the case. Below are examples of what the banks will accept. Often times they also request a bank reference letter which you can get at your bank branch or it can be written by a CPA or Financial Advisor. If you need examples of this type of letter we can provide one.

  • 5 months of bank statements showing the funds in the same account they are sent from
  • Proof of the sale of an investment that created such funds
  • Loan documentation if this is how the funds were obtained
  • Trust or Inheritance documentation if this is where the funds came from

What are the Escrow Fees?

You can find our current escrow fee schedule below:

When do I pay the Escrow Fees?

Escrow fees are part of closing costs and are only charged at the closing of the transaction. They are calculated on the total purchase price of the property. When it comes to sending the initial deposit, that is all you send (no additional fees).

What do I need to provide to receive the proceeds of a sale?

In order for us to send you the funds of the sale of your property, we need your wiring instructions. We will request those closer to the closing date securely via DocuSign or you can proactively submit them via our Client Portal.

How do you assure my personal information is secure?

At PAE we understand the need to keep your personal information secure. With common threats like identity theft and fraud on the rise, using a proven, trusted esignature app is a necessity. We use DocuSign to send and receive information securely. It protects your highly confidential information by encrypting and making every document tamper-evident. Additionally, we use authentication options to help prove that signers are who they say they are at the time of signing, helping ensure your documents have non-repudiation in a court of law. Having worked with DocuSign eSignature for years, we know the security of your documents, electronic signature authentication, and system security are prioritized.

Who do I contact, if I have questions?

You are important to us!

To ensure your needs are taken care of timely and efficiently, please include the appropriate team member to your inquiries:

For any escrow documentation related questions, please reach out to our transaction coordinator Jeannette Berens.

For questions regarding transfers and closing procedures, please contact Tomas Chavarria and to verbally confirm wiring instructions please don’t hesitate to call Tomas at 800-853-4823 from Mondays to Fridays during business hours.

For any legal questions, please consult your attorney’s office.