CandleFocus

Escrow

Candlefocus Editor
Escrow is a financial agreement where a third party holds onto assets or funds belonging to either the buyer or the seller until their contractual requirements are fulfilled. This party, known as the escrow agent, may be employed by a title insurance company, a bank, an attorney, or a real estate brokerage. It is an important aspect of real estate transactions, where escrow is used to protect both the buyer and the seller by ensuring that all conditions of the sale are met.

Generally, the buyer must meet certain conditions in order to obtain the title of the property, and the seller must provide necessary documentation and funds in order to transfer ownership. These may include paying off existing debts, providing insurance certificates and creating a title search. Escrow works as a safeguard, ensuring that all conditions of the sale are met.

In the event of an online transaction, escrow is particularly beneficial for expensive items such as art or jewelry. A buyer needs to be confident that the item has been described correctly and that it is worth the amount they are paying. Escrow works to guarantee that funds will not be released by the escrow agent until it has been confirmed that the item is as described.

The escrow process helps create a secure and transparent transaction for both parties. It is essential for any real estate or online transaction, and so it is important to be aware of the escrow process before signing any contracts.

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