An escrow is a very vital aspect of home buying that everyone should understand. Although not everyone gets to know what they are especially the new home buyers, they act or play a very important role especially in the buying process.Therefore, the escrow concept should be understood very well.
Although escrow is commonly linked to real estate, it can also be linked to financial transactions. In a financial perspective, an escrow is simply a person probably a third party that holds a valuable asset.
There are different types of escrows, the common ones are the real estate escrows, there are the online escrows and finally, we have the escrow accounts. Each of these types of escrows acts very differently. For example, Laguna Beach escrow can be a good example of real estate escrows.
Escrows in real estate always ensure that the mortgage and the taxes are paid on time. It is simply a way of transferring property from the seller to the buyer through a third party. The third party is usually to act neutrally in the transaction.
The idea behind the escrow is to ensure that no one either the buyer or the seller has a great advantage over the other one. Normally, an escrow is used to have an easy transaction or a smooth one. An escrow is, therefore, very important in any transaction.
In some states, there are agents who act as escrows while in some places, an escrow is handled by the attorney. Understanding the concept of escrow is very important especially when one is dealing in real estate business. This is because it is the only way through which a property can be transferred to the buyer fairly and without any biases. Apart from escrows being a great part of real estate businesses, they can also be used in financial transactions.