All About Escrow
What is an Escrow?
An escrow is an impartial third party, brought into a transacation to see that the primary parties, i.e., the buyers and seller, perform as they have agreed they would. Escrow enables a buyer and seller to do business with minimum risk, because the responsibility for handling the funds and documents are placed in the hands of someone who is not the least bit affected by the outcome. The escrow holder is a disinterested go-between for the parties involved in the transaction - one whose legal obligation is to safeguard the interest of everyone who is affected by the outcome.
Why should I use an escrow?
You should use an escrow in order to assure yourself of concurrent performance. What does that mean? "Concurrent Performance" means that the grant deed is recorded at the same time or on the same day that your money is realized from escrow, that is, after all obligations, such as loans, inspections, title fees, termite repairs and the like, have been paid. Escrow guarantees that your money is taken care of properly and legally so that your real estate transactions will occur with concurrent performance.
Escrow also assures you that your money and important papers are safely in the hands of a disinterested third party who has a legal responsibility to protect them. In essence, escrow provides a clearing house for funds and documents. It is a means for seeing that all the conditions of your transaction are met before the property changes hands. All parties to the escrow have legal protection during the period of escrow and everything is managed by the disinterested holder, thereby, minimizing the possibility of fraud or violations of any terms of the agreement.
Life of an Escrow
Helpful Hints To Smooth Out Your Escrow