Escrow

Simply stated, escrow is the involvement of an impartial third party in a real estate transaction. This neutral third party acts as an intermediary between the buyer and seller, and also collects and remits funds as instructed. Buyer ’s funds are deposited with the escrow company, which then remits to the seller on the buyer ’s behalf. The basic concept of escrow is to ensure that both the buyer and the seller are protected during any  real property transaction. Not only is “escrow” the concept of a third party receiving and disbursing funds, but it also includes other valuable transaction services. In order to facilitate the transfer of property from one owner to another, the best escrow companies will:
•  Prepare, review and/or revise escrow instructions.
•  Determine the legal ownership and status of the property through a title search.  
•  Request a beneficiary ’ s statement if a debt is to be assumed by the buyer.
•  Confirm that the buyer is “qualified” and meets the lender ’s requirements.
•  Confirm property meets requirements imposed by the lender and/or buyer.
•  Prorate all related financial matters  (e.g., taxes, insurance)   involved in the ownership transfer.
•  Ensure all legal documentation is complete, including recording deed.
•  Comply with time limits imposed in instructions.
•  “Close” escrow when all instructions  (buyers, seller's and lender’s)  have been fulfilled.
•  Disburse funds as instructed, including all related fees  (title fees, commissions if any payoffs, etc.)  
•  Prepare final statement for all concerned parties

 The term “escrow” has come to mean “neutral protection” for the seller, the lender and the buyer. All parties involved in the transfer of real property are impartially protected during the transaction, and are serviced by professionals intent on ensuring a smooth, trouble-free sale.