Here is the thing:
Your chances of being scammed when selling or buying a house are well, quite high. That is unless you use escrow.
Escrow offers unsurpassed safety, security, and simplicity when buying or selling a house. Whether you are a seller, buyer, or real estate agent, you should familiarize yourself with Escrow and how it works. Continue reading to understand how it works, and how it benefits you.
Escrow Basics
Escrow is a prominent means of conducting transactions whereby a trusted third party receives and disburses money or property for the transacting parties when all conditions of the transaction are met. The third party is an impartial party that is neither representing the buyer nor seller. On escrow, the buyer and seller receive equal protection and importance in the entire process.
How Escrow works
During a transaction, both the seller and buyer agree to meet stipulated terms. For example, when buying a house, the buyer agrees to pay the agreed amount by a certain duration. On the other hand, the seller agrees to provide the property being sold. There may be other terms such as the buyer inspecting the property and the seller getting assurance of being paid.
Amidst such complex transactions, the parties involved need assurance that the other party will fulfill their end of the bargain. This gives rise to the need for a trusted third party in the transaction. Escrow comes in handy to act as a reliable third party and ascertain that the buyer and seller meet the agreed terms and conditions.
Escrow comes into play when the seller and buyer reach an agreement on the selling price and other terms, and are ready to close the deal. After this, an escrow account is opened. The account can be operational for a few days or a longer period depending on the complexity of a transaction. With an escrow account ready, both parties complete the instructions for Escrow and sign the relevant documents.
An escrow provider has duties such as receiving money from one party and disbursing them when the parties involved are satisfied and meet all conditions. Both buyers and sellers benefit from escrow because their assets are secured during the transaction.
Why you need Escrow
It is simple really. A house will probably set you back a fortune, and you don’t want to lose that money to fraudulent home sellers. As a seller, you don’t want to lose your property to frauds posing as buyers.
And though you will pay a fee, it is nothing compared to the money you could lose should things go awry when buying or selling a house.
Other than safety, there is increased trust, and credibility. It is easier working with a seller or buyer who is willing to use escrow services than one who is not.
Benefits of using Escrow
Here are some of the benefits you get from escrow.
- Safe and secure transactions.
- It provides a simplified sales process by handling the details of a transaction and some of the administrative work.
- Reduces risk when dealing with unknown and untrusted buyers and sellers.
- Offers protection for both the seller and buyer. Escrow holds funds in the transaction and only releases them when both parties meet the terms and conditions for the transaction.
Escrow is gradually becoming the number one method for conducting payment transactions. Whether you want to sell or buy, escrow offers unprecedented safety, security, and simplicity. Also, you don’t have to be an expert to use the service; a beginner can also use it. Make your transactions safer today by contacting Rainier for an escrow expert.