Importance of an Escrow Company

According to Time Money, an escrow account is essentially a holding account used during the purchase of real estate. Some transactions involve two escrow accounts, the second of which is utilized between the purchaser and a lending company, such as a bank. During real estate transactions, an escrow officer is tasked with managing all of the important documents and financial transactions that occur between the buyer and seller. A title or escrow company in Albuquerque is able to function as the escrow officer for these transactions and safeguard both parties.

The Roles of Escrow Companies

Buyers and sellers benefit from employing the aid of a licensed or controlled escrow company Albuquerque. Escrow officers protect buyers and sellers throughout the real estate transaction. According to Real Estate ABC and Investopedia, their roles may include:

• Following all instructions in a timely manner according to buyer, seller and lender needs.
• Managing documents for all parties and submitting them accordingly.
• Managing funds for both parties, which may include the authorization to pay bills.
• Responding to requests from the buyer, lender, seller, and borrower.
• Ensuring that all terms and conditions are agreed upon by both parties.
• Processing and closing the escrow once all terms and conditions have been met.
• Distributing the funds after the transaction has been finalized.

Why Hire an Escrow Company

Escrow officers are valuable third-party resources that protect the seller, buyer, and lenders throughout the transaction. Real Estate ABC states that the escrow holder is obligated to keep all funds and documents safe and will not release these items until the instructions of the transaction have been met on all sides. The escrow officer is a safeguard in the event of:

• The buyer gets cold feet and retreats from the deal.
• The seller decides that they no longer wish to release their property.
• Any oversights or errors on documents.
• Any disagreements between the buyer and seller.
• The buyer’s inability to get approved by a lending company.
• Any legal issues in regards to property or title ownership.
• Any instances of fraud.

The Importance of an Escrow Company

For buyers and sellers that are new to the real estate process, escrow company in Albuquerque can help both parties ensure that the transaction is legally and financially sound. Realtor.com highlights the importance of these third-party companies, citing that escrow officers ensure that all conditions of the purchase agreement have been met on both sides before property and funds are exchanged.