Learn the basics of escrow.
Escrow is a service that provides the public with a means of protection in the handling of funds and documents. Commonly used for real estate dealings, escrow is a neutral third party that helps one person transfer funds to another. In essence, escrow allows the buyer and seller to transact business with each other through another party, minimizing risk of loss.
How is it created?
An escrow is created when money and/or documents are deposited by two or more persons with a third party that are then to be delivered upon the happening of certain conditions. This ‘third party’ is the escrow agent or escrow holder. The funds are kept safe and secure until the mutual instructions are met.
How is it defined?
The statutory definition of escrow can be found in Section 17003 of the California Financial Code:
“‘Escrow’ means any transaction wherein one person for the purpose of effecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or the performance or a prescribed condition, when it is then to be delivered by such third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the later.”
Are you a real estate professional searching for top level escrow services for your next transaction? For information on the title and escrow services offered by FNT Orange County and how to ensure your next property transaction is clear of liens and more, contact your Sales Executive at Fidelity National Title Company Orange County.