Learn More / Escrow is ...
The collection, holding, and delivery of documents
and monies by a neutral third party in accordance with
dated, written instructions from the principals to a transaction.
Having a neutral third party allows all the principals to a transaction to handle
the transaction in more convenient time frames. Many real estate sales and
refinances handled in other areas of the country do not have escrow. It is then
necessary for all the parties to be in one room at one time in order to protect
their interests. With an escrow, however, the parties may execute the
ir respective documents and instruct the escrow when the documents may
be used.
The escrow becomes a central depository. Escrow agents are neutral.
With the exception of certain statutes which require them to take specific
actions, the escrow officers simply follow the directions of the principals to
the transaction - the buyer, borrower, and seller. Escrow officers do not give
legal advice. They do not determine if a transaction is "wise". They do not
resolve disputes between the various parties. They simply follow the
instructions of the principals: which instructions MUST be "consistent"
(all parties must give the same instructions).
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