Escrow is a legal term that relates to funds that are deposited into a specific type of account (known as an escrow account) under the trust of a neutral third party until the completion of a contract that has monetary value. The neutral third party is known as an escrow agent or escrow officer, which is a licensed and bonded person or entity with no other interest in the transaction other than to handle the disbursement of funds in a timely manner.
Since real estate transactions are a process that close on average 45 days after agreement, escrow services provide an important function in our industry. In Florida, escrow services are most notably provided by attorneys or title companies,
Escrow Account Basics
An escrow account is created and held solely for the purpose of holding funds in a pending transaction and disbursing them to the appropriate parties in a timely manner when required to do so. o close.
Regarding a real estate closing, when all necessary documents have been received, reviewed and signed by the escrow officer, and the funding of a loan is received, a transaction is considered closed. Upon closing, funds will then be disbursed from the escrow account to all third parties.
If you are a homeowner, another example of a real estate escrow account is the account a mortgage lender uses to accumulate reserves and distribute funds for payment of taxes and insurance.
Escrow officers or escrow agents are in control of the escrow account. They act as intermediaries between buyers and sellers, and all other interested parties. They have no interest in the transaction except for the proper collection, safekeeping, procedure and disbursement of funds. Duties often include but are not limited to examining legal documents, executing closing documents, payments to lenders and taxing authorities.
At our office, we are a fully licensed, insured, and bonded attorney based title company with full escrow services. We invite you to contact us for more information regarding closing and escrow services as well as all areas of real estate law.
The Law Office of Donna Hearne-Gousse