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What is
Escrow?
 Escrow is a
process by which a complex sale, exchange or loan
transaction involving
real property is brought to completion.
The word "escrow" derived
from the Middle French word
escroue
meaning scroll, the
form of most documents in those early times. The word has stayed
with us since!
Once the
Home Buyer and Home Seller reach an agreement regarding the condition of
sale, they arrange for a neutral third party (in Northern
California-usually a Title Insurance Company) to hold their funds
and documents of transfer - such as deeds - until all the required
elements of the deal have been fulfilled. While the funds and
documents are held pending conclusion of the deal they are said to be
"in escrow," the transaction is said to be "in escrow," and there is "an
escrow."
You can look
at an escrow as a "clearing house" of all the activities which
requires any type document and/or any amount money to process from one
person to another through the neutral third party escrow company.
The escrow company keeps a close eye on all matters and makes certain
that anyone who needs to perform does so in a timely and complete
manner.
The escrow
company does not carry any power of its own. For instance, the
escrow company cannot demand that any party perform. However, the
escrow company can request for the performance of any matter and must
then simply wait until it is performed. However, an alert real
estate agent will be in close contact with the escrow agent checking to
make certain the other party is performing as agreed upon in the escrow
instructions.
The escrow
time period is usually agreed upon by both Buyer and Seller. The
shortest escrow period is usually 30-days. However,
if agreed upon, escrow can be upto 90-days or more. It is
simply an agreement between Buyer and Seller.
Contact an Access Real Estate Professional Today for
a Consultation to Develop Your Home Buying Plan!
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