Who is responsible for handling items like prorating taxes and fees at closing?

The escrow company plays a crucial role in the closing process, including handling items like prorating taxes and fees. This responsibility entails calculating the appropriate amounts owed by both the buyer and seller to ensure an equitable distribution of expenses associated with the transaction. The escrow company works to ensure that all necessary funds are collected, prorated, and disbursed according to the terms agreed upon in the contract and local laws.

This function is essential because it helps clarify the financial aspects of the transaction, thereby avoiding disputes between the parties post-closing. Maintaining an accurate account of these items is crucial to a successful transaction, and the escrow company is neutral, serving both the buyer and seller in this capacity. Their expertise in managing these details allows the closing to proceed smoothly and facilitates the transition of property ownership.