What is escrow?
funds and/or documents. Escrow enables the buyer and the seller to transact business with each other through a
neutral party, thereby minimizing their risk. In the escrow, all parties involved give their instructions to this
neutral intermediary, the "escrow holder" whose duty it is to assure that no funds or property will change hands
until all instructions have been carried to completion.
What types of transactions go through escrow?
real or personal property can be placed in escrow. You may be involved in escrow not only when you buy or sell
a home, but also when you buy a mobile home, sell a business or transfer stock in a closely held business.
Prizefighters have even been known to have their purses guaranteed through an escrow depository. The buyer or
seller should demand the protection of escrow for any transaction which involves a substantial investment.
Why do I need escrow?
will change hands until all of your instructions have been followed. With the increasing complexity of business,
law and tax structures, it takes a trained professional to supervise the transaction.
Who handles the escrow transaction?
can provide you with the assistance required to close your transaction quickly and effectively. This professional
person may, under the terms of the instructions, make the decision that the conditions of escrow have been met,
and then order the transfer of the affected real or personal property to the interested parties. Many escrow officers
proudly display their professional designations of certification and show these designations on their business
cards and letterhead. The designations indicate that this person has met the high standards of education and
experience required for certification by the California Escrow Association.
As a buyer entering into escrow, what must I do?
responsibility to arrange this loan. Your real estate agent can be most helpful in obtaining a lender, since he or she
is more knowledgeable about which lenders are currently active and their financing terms.
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