Can a Title Company Handle Escrows?
YES, they most certainly can. Title companies play several key roles in matters concerning real estate transactions. They act as the agent of various parties involved in real estate transactions, including buyer, insurance company, and seller. One of their most important responsibilities is the handling of escrow accounts, which generally contain funds needed to close the deal. Funds are set aside in escrow accounts to ensure that the money is used only for its main purpose, namely for settlement and closing costs.
Buying and selling of property is capital-intensive and usually involves a transaction of huge sums of money. It is therefore important to ensure that the process is handled by a neutral party that has no special interest. Title companies usually handle the transfer of funds and all necessary documents from one party to another. They do this to ensure that all conditions that have been put in place are met before money and property change hands. The tittle company usually implements written instructions given by the main stakeholders (the seller, buyer and lender). These instructions include receiving necessary documents and funds, completing the required forms, and handling necessary items (funds and documents) to respective parties upon completion of the escrow process.
As closing and settlement agent, a title company not only manages the closing process but also conducts it. Title companies are well-versed in the mechanics of the real estate industry; they know how sensitive real estate transaction are and they ensure that the process is conducted transparently and smoothly so that both parties involved in the process are happy and satisfied. The closing process can sometimes be very complicated. The title company will assist with resolving any issues that may arise and they will ensure that all parties have reached a common ground before they allow exchange of funds and documents to the seller and buyer, respectively.
Should I trust title companies to handle escrows?
YES. In fact, they are the best and most recommended choice to handle escrows. As a neutral third party, they have no special interest in the process. Their main goal is to ensure that all parties involved in the process are happy and satisfied. They also ensure that all involved parties have complied with the law and have followed legal process. They will only allow money and documents to change hands if they are satisfied beyond reasonable doubt that all conditions set by parties, and legal requirements, have been met. Therefore, when you choose a title company to handle escrow, you can be sure that your money or documents are in safe hands, especially since they are generally backstopped by giant, publicly-held title insurance companies.