Escrow is an arrangement between two parties to enlist an impartial third party, also known as an escrow provider to hold money, paperwork, and other assets on each party’s behalf until the real estate transaction has been finalized.
Understanding the escrow process can help you trust your escrow agent and minimize any risks, so you can move forward with your real estate transaction comfortably.
The Escrow Process
Buying and selling ordinarily requires signing a contract agreeing to certain terms. A buyer must pay the agreed upon amount and the seller must provide the agreed upon item. Buyers reserve the right to have a property inspected before they pay the purchase price. Sellers want every assurance they will be paid at the closing. A third-party escrow agent ensures the seller that the funds held in escrow will be available towards meeting the buyer’s obligation at closing.
The Escrow Provider’s Responsibilities
An escrow agent receives funds from the buyer and disburses these funds according to the terms of the sales contract. Their most important role is safeguarding the assets until the funds are transferred to the seller at closing, or returned to the buyer if the transaction does not close and the buyer is not in default.
Real Estate Escrow
Escrow is commonly used in real estate transactions and begins when a signed purchase and sale contract is delivered to an escrow officer. The buyer makes the deposits required under the contract directly to the escrow agent who holds the funds in a secure bank account for the benefit of the buyer. The escrow process is complete when the escrow agent pays over the escrowed funds to the title attorney or title company who disburses the funds to the seller as part of the seller’s proceeds at closing.
Richard S. Weinstein
Richard S. Weinstein is an experienced real estate attorney and title agent who can help you with all of your real estate transactions. Having legal representation makes good real estate business sense. A competent and experienced attorney will protect your interests. Richard S. Weinstein wishes you a happy and healthy holiday season.
With over 50 years of experience as an attorney, Richard S. Weinstein assists clients with the important financial situations in their lives. Whether you are dealing with bankruptcy, real estate (both commercial and residential, including short sales, foreclosures, and title insurance), estate planning, probate, business formations, or sales or mergers, Richard S. Weinstein is the attorney with the education, experience, and knowledge you need! Call us at (561) 745-3040 or visit his website at rweinsteinlaw.com.
Law Office of Richard S. Weinstein, P.A.
250 S. Central Blvd. #101
Jupiter, FL 33458
Phone (561) 745-3040
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