Do the funds for a property purchase go into an escrow account or is this arranged by the buyer's agent?

Oct 10, 2022, 16:51 PM
Title : Do the funds for a property purchase go into an escrow account or is this arranged by the buyer's agent?

Generally the only funds held during the purchase period is the deposit that is put down as part of the offer, which is usually held by the selling agents in their trust account. The balance of the purchase price is usually paid at settlement.

If you are paying in cash, then your settlement agent would arrange a bank cheque to be handed over at settlement to the seller’s settlement agent on the day of settlement. If you are financing it through a bank, then they hand the funds over on the settlement day to the seller’s settlement agent.

The settlement agents and a representative from the bank usually meet at a designated place and time on settlement day to finalise it all.

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