Real Living, Inc.

Website Links

Description

What is Escrow? An Escrow is an arrangement in which a disinterested Third Party, an Escrow Holder, holds legal documents and funds on behalf of sellers, buyers, and often times lenders. These instruments and funds are later distributed according to written instructions from all parties. These escrows provide protection and convenience for all parties involved in the transaction. By written instruction, the buyer directs the escrow holder to disburse purchase price funds only upon satisfaction of detailed contractual conditions. Also by written instruction, sellers direct the escrow holder to retain possession of the deed until contractual obligations are met. The same applies for the lender; they will only fund a loan and allow release of said funds upon satisfaction of their written instructions. All parties rely on the escrow holder to strictly adhere to their mutually agreed upon instructions relating to the transaction, and to advise all parties if there are inconsistencies or issues which will delay/stop the progress. Some geographic areas perform escrow closings; others due to differences in time-honored practices, perform closings in a roundtable format instead. Funding disbursements occur differently, and the closing appointments with buyers and sellers are handled somewhat differently, but the Escrow Holder remains legally obligated to perform the escrow services per written instructions from the parties to the transaction, regardless of the nature of the process. An Escrow provides convenience, allowing both sides of the transactions for buyers and sellers to move forward separately and simultaneously. Contractual obligations for inspections, appraisals, loan commitments, deeds and various other items can be accomplished using the escrow as the central depository. If written instructions are clear and concise, and mutually agreed upon by all parties, the escrow holder can proceed on their behalf without further consultation, saving considerable time and efforts for all. Who May Hold Escrows? The escrow holder may be any disinterested third party, although some states require that certain escrow holders be licensed. Though there are many important reasons for selecting an established independent title insurance company or escrow firm where required, or an attorney, or an escrow officer working in a lending institution, following are the two primary reasons. First, the real estate transaction requires considerable technical experience and knowledge to ensure a smooth process. Second, the escrow holder will be held responsible for safeguarding and properly distributing funds for the purchase price, existing mortgage payoff's, etc. Escrow officers/processors are experienced and trained in real estate procedures, title insurance, tax prorations, deeds and more. Impartiality It is important to remember an escrow officer/processor is a disinterested third party, working equally for the benefit of all parties to the transaction, serving their needs entirely without bias. Escrow Instructions Escrow instructions are written, signed documents that direct the escrow officer in the specific steps to be completed so the escrow can be closed.

Fact sheet

Company contacts

Products & services

Similar companies nearby