A trusted and experienced escrow service is an essential part of both simple and complex real estate transactions.
In many states an escrow service is legally required even for the simplest transaction of a single-family house without a lender involved—to ensure the safety of transferring the funds. And for a multi-million dollar commercial project, involving multiple sellers and buyers and numerous sources of financing, extensive escrow services are even more essential.
Buyers need to know that their earnest money is safely stored in their escrow account until it is credited toward their purchase price at closing. Sellers want assurance that any debt against the property, and any other seller’s expenses, will be accurately accounted for and deducted from the sales proceeds.
Lenders want to make sure that proceeds from construction loans are managed with integrity—and that projects are protected from any third-party claims as a result of failing to collect lien waivers where necessary.
Legitimate escrow services are essential to maintaining the financial integrity of any real estate transaction. The national real estate vendor directory at RealEstateBees.com features the top-rated escrow companies in the USA. From our top 10 list, you can select the best escrow service provider in your area.
Frequently Asked Questions
What are escrow services?
Real estate escrow companies are third-party entities that provide a money transfer service to the buyer and seller of real property by acting as an intermediary. This helps keep the financial transactions safe for both interested parties involved.
During a property sale or refinance, high amounts of money need to be transferred from one party to another. This makes transferring funds from the buyer to the seller directly more risky if the parties don’t trust each other. The protection consists of preventing fraud by collecting and holding all the funds in escrow by a third party until the deal is closed or other conditions specified in the agreement are met.