Posts Tagged: 3rd Party

What is 3rd Party Escrow?

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.

Analyzing ‘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.

Real Estate Escrow CompanyEscrow

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.

Escrow Accounts

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.

Why use Escrow?

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.