Escrow refers to a financial arrangement between a buyer and a seller in which a third party holds funds or pertinent documents for a period of time during the transaction process. Ultimately, the escrow agent facilitates the transaction while protecting both buyer and seller. During real estate transactions, the escrow agent is typically the title company, who will hold the funds for the purchase of the property in addition to its deed, the mortgage instruments, and any deposits until closing. While an escrow agent can be sufficient for a smooth transaction, a seasoned real estate lawyer will help to close any potential loopholes and identify if any part of the agreement is not advantageous.
The escrow process is especially useful in transactions that involve large amounts of money and in situations where the seller must meet certain obligations before the sale is final. Ultimately, escrow reduces the chance of fraud by collecting and holding funds until both the buyer and seller have met certain terms and are satisfied with the transaction.
Are You In The Process Of Purchasing A Home?
The financial and legal procedures that must occur before closing are complicated, but a real estate attorney such as Steve Butcher Sr., Esq. in Rochester, NY, will guide you every step of the way. Although every transaction is different, Attorney Butcher can answer any questions you might have about the purchasing process.
Steve Butcher Sr., Esq. does not charge a percentage of the transaction for his legal services, instead charging a flat fee for closings procedures for the convenience of his clients. Visit his website to learn more about his fee structure, and call (585) 263-2444 to talk to a real estate attorney in Rochester, NY, today about your escrow agreement.