A Brief Definition of Escrow and Why It’s Essential

According to www.merriam-webster.com, escrow is defined as: a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition. In real estate transactions, there are so many parties obligated to fulfill so many responsibilities, it is easy to see why a neutral party like an escrow company is essential to a smooth process.

In any given transaction, you have the buyer and seller, their agents, the inspectors, the appraiser, the mortgage broker, the lender, the lien holders, the IRS and and handful of other variables. It is during the escrow process that the money gets divvied up and everyone's proceeds and fees are accounted for according to the conditions of the contract. The escrow company also ensures such things as a clear title, recording the deed, ordering warranties, filing paperwork with the proper municipalities, and receiving funds to be disbursed, just to name a few.

Whether it is the buying and selling of a home or the transfer of a business, the amount of legal documentation and financial liabilities can easily create confusion or differences of opinion and the worst things of all, the delay of a timely close. This is why an impartial, third-party representative becomes essential to focusing on the facts and responsibilities that must be fulfilled.

During my extensive career in real estate, I have encountered issues from all ends of the spectrum, but a good escrow company can handle them with ease, just like a good real estate agent. Together we can make your home buying experience a breeze. My name is Carol Wolfe and nobody does it better.