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Escrow for Sellers & Buyers

What is Escrow?

Escrow is a service which provides the public with a means of protection in the handling of funds and/or documents.

Why is Escrow Needed?

Whether you are the buyer or the seller, you want assurance that no funds or property will change hands until all instructions have been followed. With the increasing complexity of business, law and tax structures, it takes a trained professional to supervise the transaction.

Who Chooses the Escrow Company?

The selection of the escrow holder is normally done by agreement between the principals. If a real estate agent is involved, they may recommend an escrow holder. However, it is the right of th principals (seller and buyer) to use an escrow older who is competent and experienced in handling the type of escrow at hand. You can ask a real estate agent or lender to recommend two or three different escrow companies to choose from. You may also find escrow companies listed in the yellow pages of the phone book under either Real Estate Escrow, Escrow or Real Estate Title Insurance.

Escrow Functions Typically Include the Following Valuable Transaction Services:

• Prepare escrow instructions.
• Serve as the communication link to all transaction parties.
• Rquest preliminary title report/commitment.
• Request a beneficiary's statment or pay-off demand relating to existing financing.
• Comply with lender's requirements as specified in escrow agreement.
• Receive purchase funds from the buyer.
• Prepare or secure the transfer deed or other documents related to escrow.
• Prorate taxes, interest, insurance and rents according to instructions.
• Secure releases of all escrow contingencies or other conditions are required.
• Record deeds and any other documents as instructed.
• Request issuance of the title insurance policy as instructed in Purchase Contract.
• Disburse funds as authrized, including charges for title insurance, recording fees, commissions and loan payoffs.
• Prepare final accounting statements for the parties.
• Escrow is considered "closed" when all documents are recored and instructions have been carried out.

Escrow does not offer legal/investment advice or negotiate the transaction.