What is Escrow?

Escrow is a service that provides the public with a means of protection in the handling of funds and/or documents. Escrow enables the buyer and the seller to transact business with each other through a neutral party, thereby minimizing their risk. In the escrow, all parties involved give their instructions to this neutral third party.

An escrow holder (i.e. Sincere Escrow) is the neutral third party in a real estate transaction. Their duty is to see all of the terms and conditions of the sale are met (the seller's and buyer's or lender's and borrower's) at the time of closing.

The seller's title is protected and held in safekeeping until all of the terms are compete. The buyers may deposit funds with the knowledge that they will be held in trust until the transfer of the property.

In the time that a real estate transaction requires the parties are protected with a written contract containing all the terms and conditions of the sale. Escrow provides one central place where all funds and documents are deposited. They can be collected and disbursed only when all conditions of the contract are met.

The escrow office is responsible for the final settlement between the buyer and seller, the recording of the required documents, the payoff of existing liens or mortgages, and the prorating of real property taxes, lease rents, maintenance fees, and any other property expenses to assure an accurate and complete closing.

Sincere Escrow is committed to fulfilling these duties in an accurate manner.

Click here to view the complete "Life of an Escrow" and the steps in an escrow process.