WHAT IT MEANS TO PUT REAL ESTATE TRANSACTIONS INTO THE BEST ESCROW SERVICES13 May 2019
A lot of people don’t know the importance of escrow services when they make transactions, in real estate or elsewhere, especially when they are just starting out with their investments. But while many are already making use of such services, they are still wondering whether they truly need them.
What are escrow services and how can they help in your business? That is what we will learn in this article so please read on.
According to Investopedia, an escrow is a legal concept in which a financial instrument or an asset is held by a third-party on behalf of two other parties that are in the processes of completing a transaction. The funds or assets remain with the third party, such as a bank, until they are instructed to release them to the proper group after their predetermined contractual obligations are completed.
With this definition, it can be inferred that an escrow service may not be needed in every transaction. But will it be better if you put your transactions into escrow management?
Let us answer this question by defining the duties of the escrow holder.
- The escrow holder serves as the neutral agent and the liaison between the parties involved
- He does a preliminary title search to determine the status of title to the property
- He secures releases of all contingencies or other conditions stated on the escrow
- He prepares the documents and deeds needed related to the escrow
- He prorates taxes, insurance, interests and rents
- He receives purchase funds from the buyer and loan funds from the buyer’s lender
- He records the deed and other documents
Just like getting property management services from Zawaya Property, making use of escrow services ensures that your assets are safe and protected. An escrow safeguards real estate transactions. It protects the public especially the parties involved, by reducing the risks related to any real estate purchases. And that is what you would want for your property investments. Escrows may also be used for leasing, financing or refinancing personal property, purchasing a business opportunity, or a mobile home.
And because Noor Bank Zawaya Property provides escrow facilities to developers, you are assured that your assets are in the right hands.
Know more about Zawaya Property, property management and escrow services now so you fully understand why you need escrow management services for your transactions. Visit Zawaya Property today.