I am already in contract of purchasing a condo for $125,000. Common charges are $435.00. The condo is already tenant occupied paying $1150.00 monthly. Yesterday, I had to give my lawyer .05% for an escrow account. I do not know what this is? Is my down payment for .20% accounted into this escrow account?
2007-11-15 04:19:19 · 2 answers · asked by D 1 in Business & Finance ➔ Renting & Real Estate
Down payments are usually held in an escrow account (common convention is the seller's real estate brokerage holds the money until closing). In this case it sounds like it is being held by your attorney.
My guess is that you mean 5% (which is 0.05), because if you really meant 0.05% it is only $62.50 which could be for any manner of things. This 5% will be part of the money you need to close (if you are putting down 20%, you will need to bring the other 15% downpayment and other closing costs to the closing).
You shouldn't have handed anyone, even your lawyer, a check unless you know exactly what it's for. Contact them and find out what it's for.
good luck!
2007-11-15 05:19:33 · answer #1 · answered by Rush is a band 7 · 1⤊ 0⤋
An escrow account is for insurance and taxes.
2007-11-15 12:23:48 · answer #2 · answered by Patti 3 · 0⤊ 1⤋