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Escrow of Real
Estate
Escrow is the depositing of funds and documents by the parties to a
transaction with an impartial or neutral third party.
It takes orders from sellers, buyers, lenders, inspectors and others setting
out the terms and conditions under which further delivery is to be made.
In California, escrow companies and their employees must be licensed and
bonded.
Many escrows are done through title companies which provide reports and
title insurance.
The Escrow Holder duties are to perform the clerical details for the
settlement of accounts between parties, be custodian for funds and documents
and clearing house for payments of all demands. This reduces the risk to the
parties in the transaction.
Preliminary reports are usually done as a first step after placing real
estate or property into escrow and provides the buyer the opportunity to
seek the removal of items which are objectionable, prior to purchase. This
report shows the ownership of a specific parcel of land and lists title
defects, liens and encumbrances, any recorded restrictions which have been
placed in a prior deed or contained in what
Title Insurance is real estate ownership insurance or an insured statement
of the condition of "title" of a particular property or Real Estate and is
issued to protect both the buyer and the lender. The lender almost always
requires title Insurance as a condition of Real Estate lending. Title
Insurance on real estate is usually charged to the buyer and the seller, but
is like anything, it’s negotiable. |
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