In real estate, Escrow refers to funds and documents that are held by an impartial third party – such as AmeriTitle – on behalf of the buyer and seller and/or lender during the process of the transaction. Both funds and documents are distributed or recorded only when the escrow agent follows the written instructions received from the parties.
An escrow account is created for protection and convenience for all parties. The escrow officer should faithfully carry out mutually agrees upon instructions from both parties, or advise them if any of the instructions are contradictory or cannot be filed.
Once everything has been processed and fulfilled, the escrow is closed and the transfer of property and money is completed.
Benefits for the Seller
The seller is confident that the transaction will properly and promptly close. The title will not pass to the buyer until the purchase price is fully paid or the seller’s provision as to security for unpaid balances is fulfilled.
Benefits for the Buyer
The buyer too is assured that the transaction will properly be completed and the title will be cleared for the delivery of the loan proceeds or security documents. The buyer also is able to review the condition of the title to property by receiving a copy of the preliminary title report prior to closing.