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What are Escrow Services For Real Estate and What To Expect?

escrow-services-for-real-estate

When looking to buy a home, you will probably hear the term “escrow” used frequently. Escrow plays a significant role in the home-buying process. Here is a quick guide to explain escrow service for real estate and what to expect.

Definition

Escrow is a legal arrangement when a third party holds onto sums of money during the buying process. After a property is purchased, the buyer will continually put money into the escrow account. These funds guarantee that the buyer legitimately has the funds to fulfill the purchase. Plus, the escrow protects the buyer from having an untrustworthy, fraudulent seller who might be trying to take advantage of them. 

The third party that holds onto the escrow funds is neither buyer nor seller and must be neutral. They offer protection for both buyer and seller. The funds are only released once all of the conditions for the arrangement are complete. Most often, transferring the title is what completes the agreement.

Escrow Services

An escrow agent carries out escrow services for real estate. Escrow agents are also known as title agents or escrow providers. The escrow agent ensures the terms of the legal arrangement are fulfilled for both buyer and seller. They oversee the transfer of title, distribute funds according to the contract, and end the escrow once complete. 

You can think of escrow agents as the mediator between buyer and seller. Handling the legal documents and escrow ensures that both the buyer and seller receive the agreed-upon funds and assets. Escrow services for real estate are crucial when two parties are unfamiliar with each other, the transaction is high-stakes, and both parties need absolute assurance that the process proceeds smoothly.

Who Are You Trusting With Your Title?

Venture Title Agency provides on-time title and escrow services, so your closing is worry-free. We’re here to make sure your title is handled professionally. Contact us today to schedule your closing!