Most people have heard this word before: “escrow.” But what does it mean? You may have a general idea, but still be fuzzy on a few detail. Expert Title Company not only provides escrow services in Boca Raton, but we will explain to you in detail what an escrow is and how it works.
An escrow account is essentially a holding tank. During a real estate transaction, the escrow officer holds all the important documents and deposits while the buyer and seller work out the details.
The escrow officer makes sure the closing goes smoothly and everyone gets paid what they’re owed, including the escrow officer. After the closing, the escrow agent records the deed and title transfer that make the home officially yours.
Most transactions involve a second type of escrow account, between you and your lender. Many mortgage lenders hold money in escrow to pay property taxes and insurance. Each month, you pay a portion of the estimated annual costs along with your principal and interest.
At the end of the year, the lender adjusts your monthly escrow amount based on the actual tax and insurance bills.
Given the various reasons that companies may need an escrow account, it is important to screen escrow service providers to make sure they accommodate all parties. Here are five characteristics you should consider when choosing an escrow agent for a commercial transaction: