An Escrow Company Provides A Service For The Public Including A Means Of Protecting Both Documents And Money Or Funds

Category: Finance, Real Estate.

An Escrow company provides a service for the public including a means of protecting both documents and money or funds.

Most parties involved in a transaction want a neutral third party, to provide the, an Escrow company assurance that no monies or funds or property will change hands until all instructions are carried out and have been followed. They are a neutral third party that buyers, mortgage companies and, sellers investors use to hold and transfer funds and documents as needed, especially in a real estate sale/ purchase or other transfer. Consider the alternative. No, we want someone not partial to the transaction to hold the earnest deposit, and the mortgage company wants to wire the money to the Escrow Company to distribute to the seller and the buyers as agreed. Would a buyer ever want a seller to hold his earnest deposit of up to thousands of dollars, hoping that it will be applied as agreed upon. Who chooses the escrow company?

Historically, the buyer has chosen the escrow company because its his earnest deposit that is initially being held by a third party. In a real estate transaction, especially Phoenix, in Arizona, Chandler, and Gilbert, Ahwatukee, the escrow company is usually a joint agreement between the buyer and seller. In many cases, especially when an, however investor has a long relationship with an Escrow company or officer, he/ she may request a particular company. Where do you find a reputable escrow company? In my real estate business, located in Phoenix but representing the entire Valley of the Sun, I recommend to my buyers that they choose the Escrow and title company. Most real estate agents know several local Escrow companies especially in Phoenix or Chandler.

You can also find them on the internet, and yellow pages under Real Estate Escrow, Escrow or Real Estate title Insurance, since in Arizona most Escrow Companies are also Title Companies. Lenders also are familiar with Escrow Companies and can recommend several to you. Reviewing, you almost always should have an Escrow company to accept and disburse all monies involved in the transaction, and issue all, and gather documentation as their needs are met. The cost of an escrow company is minimal from a few dollars to a few hundred dollars and the protections is priceless! There is simply too much at risk not to use a neutral third party for your real estate transactions. Escrow companies can be found in the phone book or ask any real estate agent.