Before we dig deep into the details of 3rd party escrow, one should know what 3rd party is. Any party or individual who is involved in the transaction is called 3rd party and has a lesser interest in the property. For example, an escrow company in real estate who is responsible for collecting documents from seller and buyer and have no other interest in property is an example of a 3rd party.
Mostly 3rd parties are used by other parties to alleviate risk. For example, many small financing companies face tough competition entering in the industry and each time large companies get the deal. So in order to enter in the industry, small companies involve 3rd parties with them.
Documentation and funds transfer is taken care by a real estate escrow company. The whole process is carried by the escrow officers and they follow orders of seller and buyers efficiently. The escrow officer follows all the instructions and after checking documents delivers the funds to the corresponding parties.
When your real estate transactions held in escrow, all of you funds are compiled in an escrow account and are released after the transaction is complete. It is recommended to withdraw money using escrow as your funds remain secure and protected against charge backs.
No matter what are you selling or buying, escrow ensures that all the buyers and sellers treated equally and their disputes are handled with extreme concern. If you are making your transactions via escrow, you don’t need to worry because the whole transaction process is well supervised by the competent escrow professionals.
It is very easy to pay via escrow. Seller just needs to pay the amount and the rest will be handled by escrow.
Third party escrow is an important part of real estate business. If you want to keep yourself protected in the matter of funds, then you should surely go for escrow. I hope that after reading this guide you will be able to understand well about third party escrow.
On closing day there are different parties who are present. If you are a buyer, then you pay the price of the house and the seller will hand over the keys of the house to you and any further signing formalities will be taken care by the agents.
However, if you have never been at a house closing, then you may not be aware of the different parties present on that day. So, if you are planning to attend a house closing, keep in mind the following parties and why they appear at the closing day:
The agent who might work for the Title Company or lender.
The closing agent may also be the Attorney who is either representing you or the lender. However, it is always a good idea to have an attorney with you.
This is the seller who is going to sell the property and is responsible to provide the evidence for the ownership of the house.
Seller’s real estate agent who will take care the documenting and signing formality and will make sure that his client get the money he was supposed to get. This could also be a wholesaler (http://www.fasttacomahousebuyers.com), someone who is holding a contract of a home and is selling it on behalf of the seller.
Like seller’s agent, buyer will also have a real estate agent who will make sure that his client gets the ownership of the property.
The main person at house closing is a closing agent. A Closing agent makes sure that both parties get what they agreed upon. And is also responsible for completing the documents signed by both parties.
Either you are a buyer or a seller, house closing is an important day for you, so you should know all the ins and outs of it. I hope that after reading this guide, you will be able to understand the different parties present at house closing and what are their responsibilities.