An escrow is a deposit of funds or deed by one party for the delivery to another party upon completion of a particular condition or even, such as closing on your home.
No matter which side of the purchase you are on, you want the assurance that no funds or property will change hands until all instructions in the transaction have been followed completely and accurately. The escrow holder has the obligation to safeguard the funds/documents while in their possession, and to disburse them only when all provisions of the escrow have been complied with.
There are four mail principals to the escrow - the buyer, the seller, the lender and the borrower. These principals cause the escrow instructions to be created, signed and delivered to the escrow officer. It a broker is being used, he/she will normally provide the escrow officer with the necessary information, instructions and documents. The escrow officer processes the escrow in accordance with the instructions provided. Once all conditions of the escrow have been met, the escrow can be considered closed.
The duties of the escrow holder include:
- Following the instructions of the principals
- Handling the funds/documents in accordance with instructions
- Paying all bills as authorized
- Responding to authorized requests from the principals
- Closing the escrow when all terms and conditions have been met
For more information on an escrow, contact me today!
Source: RealEstateABC
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