Escrow is not a term we use every day. But for the homebuyer or home seller, this term could come up in a general discussion. So what does it mean? Let’s take a look!
What is Escrow?
Escrow is a financial arrangement where a third party holds and regulated the payment of the funds in the account for two parties involved in a transaction. Think of escrow as the hub of a wheel. This account brings all of the parties together to ensure all of the conditions of a sale are met before you walk away from the closing table. This service holds everything of value including the titles and deposits until the transaction is complete. This will help you stay up to date on what other parties are doing and helps to lower potential risks of fraud by the other parties.
How Does It Work?
When you want to buy a home, you and the seller, as well as the agents, involves agreeing on an offer. Once everyone is satisfied, the escrow account is opened. These accounts are managed by a third party such as a lawyer or escrow company to hold the money until all of the paperwork has been signed and the home is ready to be sold. An escrow account is opened by the third party in order to deposit the earnest money deposit from the buyer. It will work to ensure that the closing goes as smoothly as possible. Instead of trying to keep everything straight, the escrow company will work with you to ensure your documents and funds are in order. The escrow manager will also handle all of the escrow processes like arranging for a title search, schedule the closing meeting, disbursing the funds, and seeing that everything is completed and recorded to the county. Once all of these conditions are met, the escrow holder will close the account.
With just a little bit of help from a Simply Referable agent, you will be a real estate pro in no time! Check out some of our other real estate terms and call Simply Referable to start buying or selling your home today!
Call Simply Referable!
There are any number of obscure and strange real estate laws in Maryland. The small team of realtors at Simply Referable will be happy to help guide you through the thicket. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.