What is Escrow?
The word derives from the Old French word escroue, meaning a scrap of paper or a roll of parchment; this indicated the deed that a third party held until a transaction was completed. It has since been expanded to include a neutral third party that has been entrusted to complete the transfer of funds, a deed or other instrument by one party for the delivery to another party per the terms of a signed sales contract.
The escrow officer will process the escrow, according to the escrow instructions, and only when all conditions required in the escrow can be met or achieved, will the escrow be “closed” and a Closing or Settlement Statement be issued Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand.
The selection of the escrow holder is normally done by agreement between the principals (buyer, seller, lender, borrower). If a real estate broker is involved in the transaction, the broker may recommend an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer the best possible escrow services without any compromise caused by a person receiving a referral fee.
For more information, please call me at (909) 374-4744.