Escrow is a legal arrangement used to transfer the title to real property. It reduces the risk of fraud by creating a third party that holds the liability of collecting and distributing the funds as per the instructions of the buyers and sellers. The procedure includes delivering of the asset to a third party (usually an escrow agent) to be held in trust for a pending payment. After all the payments are made, the agent delivers the asset to the receipt otherwise maintain the escrow account.
It is opened when both the parties (i.e. seller and buyer) reaches an agreement on price and other terms. The account can stay open for long periods depending on the complexity of the deal.
Role of an escrow agent
- He/she generally acts in the favor of both the parties to ensure that the transaction takes place with few problems and in full satisfaction.
- Ensures all the paperwork is in order.
- Orders a title report from a title company.
- Makes sure all existing loans are paid off and closely examines the deal.
- Prepares proper papers to get the deal closed.
Importance of escrow services
It is basically clearing home for funds and dues to make sure that all the conditions are met prior handling the property to other hands. All the parties in the procedure are legally protected against fraud. It also guarantees that your money is taken well care of.
The fee of the escrow agent is based on the size of the deal. The procedure includes lots of paperwork so it is in your best interest to hire the services of a professional.
Look for the service providers online or in local directories. Make a list of the top five firms and call them one by one. Inquire about their experience, hours of operation, methods of communication they use for clients and the way they will handle the escrow collection account. Also inquire the fees and funding options.
Choose the one with whom you are comfortable working with. Your choice of an escrow officer is an important decision so take it wisely.
For escrow services in Florida, get in touch with All Florida Title. We are a full service title insurance agency having years of experience. Till date, we have closed many deals. For any queries, get in touch with us. You can call us or email us your queries. We will be happy to help you.