In the state of California an escrow company is the company used when someone wants to sell their home.
An escrow company is the third party facilitator of the Real Estate transaction and handles everything from the transfer of ownership, deeds, and disclosures and of course the transfer of funds.
Having a third party to facilitate the entire Real Estate transaction and insure that the sale of a home is completed efficiently will give the buyer confidence that their money is safely store in a “storehouse” and will be paid to the seller once the sale is completed.
What an Escrow Is Important
Regardless if you’re planning on buying or selling a home an escrow is important because it guarantees that absolutely no money or property is going to change hands between the buyer and seller until the terms and or conditions of the Real Estate transaction have been completed.
An escrow holder’s job is to take responsibility of the funds and or documents then pay out all of the funds plus transfer the title to the new owner when the set requirements of the entire escrow process are complete.
How Exactly Does An Escrow Work?
At the start of a Real Estate transaction the seller, buyer, and lender and of course the borrower will sign escrow instructions then once those instructions are created they will sign them and have them delivered to an escrow officer for the transaction.
Once the escrow officer receives the instructions they will verify that all instructions have been met, confirm that escrow has now been closed, then release the funds to the seller.
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