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by Lothar
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Almost all real estate transactions are processed
through something called an "Escrow". But what the check is that?
Escrow is a neutral party that holds funds, acts upon
documents and follows the instructions of the parties
to a real estate transaction.
The escrow holder takes written instructions from
sellers, buyers, lenders, inspectors and others.
Those instructions define the terms and conditions under which the transaction will be completed.
In most states escrow can only be handled by a licensed corporation or an attorney. In some areas most escrows
and transaction settlement are handled by the same
company the writes the title insurance.
Escrow reduces the risk to both buyer and seller.
The Escrow Company, Title Company or Attorney Acts as:
- A custodian for funds and documents.
- A clearing house for payments of all demands.
- An agency to perform the clerical details between parties.
A title insurance company issues a preliminary title report
that shows the ownership details of a specific parcel of
land and lists title defects, liens and encumbrances.
The report might also show recorded restrictions which have been placed in a prior deed. The report can also show
details of any covenants, conditions and restrictions (CC&Rs)
contained in a prior deed. These can limit the |
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