Escrow and Title Company
Escrow and Title Agencies
Basic understanding of Escrow and Title Agencies
What They Do
Escrow:
-
Escrow is when a neutral third party holds on to funds during a transaction.
-
It’s used as a way to protect both the buyer and seller during the home purchasing process.
Title Agency:
-
Search country real estate records to determine the legal ownership of the property.
-
Find mortgages, liens, or unpaid taxes that must be settled before a property can be sold.
-
Look for any legal restrictions, easements or leases that may exist on the property
What You Need To Know
Escrow:
The purpose of escrow is two-fold.
-
Guarantees the seller that the buyer has the funds needed for the purchase and that the money will be handed over once the title is transferred.
-
Guarantees the buyer that they won’t be scammed by a fraudulent seller who actually holds no claim to a title.
Ultimately, escrow helps ensure trust in a high-stakes transaction where neither party may be familiar with each other and where both have a lot to lose.
Title Agency:
-
Ensures that the property you are purchasing is legally available for the seller to sell.
-
Guarantees this to all parties and they handle the legal paper work required to transfer ownership from the sell to the buyer.
