Designating The Escrow Holder

Because the selection of an Escrow Holder is not usually critical to either principal in a transaction, real estate brokers have in the past played a large role in deciding where a transaction would be escrowed. In recent years, however, there has been an increasing effort on the part of federal and state regulators to minimize the influence of the broker in selection of the escrow holder. The rationale is that buyers and sellers have the right and should have the opportunity, to CHOOSE and compare escrow services and charges, if they so desire to negotiate between themselves as to where escrow will be held.

This past year, I have seen an increase on the Buyers and Sellers having a say so on choosing an escrow holder. They are shopping around and comparing prices, along with the Escrow Officer's experience and knowledge. Realtors and including Mortgage Brokers are having less choices with directing escrow.

As a consumer, we always have the option on choosing whom we want for services when we are paying for those services. So in the future, don't be afraid to speak up and make suggestions as to whom you would like to handle your escrow. Always shop around. You do so when you choose a Realtor, Mortgage Broker, Insurance Agent, etc. so why not for ESCROW?

Also, remeber that there are differences as to what type of Escrow Company handles your escrow. And the Escrow Officer will also make a difference.

So if you are in the process of Selling, Buying or Refinancing, this something to always consider. Either way, GOOD LUCK with ESCROW!