What is a “credit through escrow”?
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What is a “credit through escrow”?
Seller offered a credit through escrow toward closing costs.That does not seem like it’s to our benefit since it’s out money to begin with. Am I not thinking clearly on this?
Asked on August 15, 2011 California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
In all states in this country, there are associated closing costs for the buyer of real property. Such costs include, but are not limited to notary fees, escrow fees, title insurance, messenger fees, recording fees and many other fees set forth in the preliminary closing statement and in the final closing statement of the buyer once escrow closes.
These costs alone can exceed several thousand dollars.
If the seller is willing to pay you as the buyers a certain amount of your closing costs as part of the transaction as a "credit" on the net amount the seller will receive if the sale closes, you as the buyer are getting a benefit.
If you have a real estate agent representing you in the purchase, you need to have him or her explain further the "credit" for closing costs offered you by the seller.
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