What Escrow and Title Companies Do:
Escrow Services:
Neutral Third Party: Escrow companies act as a neutral third party to facilitate the transaction. They hold funds, manage the disbursement of money, and ensure that all conditions of the sale are met before closing.
Document Management: Escrow companies handle specific documents required to close the sale, such as the deed, loan paperwork, and other necessary legal forms.
Fund Distribution: They ensure that all parties, including the seller, buyer, and any involved agents, receive their respective payments.
Title Services:
Title Search: Title companies conduct a thorough search to verify the legal ownership of the property and ensure there are no outstanding liens or claims.
Title Insurance: They provide insurance to protect the buyer and lender from any future claims against the property.
Title Transfer: Title companies handle the legal transfer of ownership from the seller to the buyer.
What Escrow and Title Companies DO NOT DO:
Representation: Escrow and title companies do not represent the seller or provide legal advice. They are impartial facilitators of the transaction.
Negotiations: They do not handle offer reviews, counteroffers, or any negotiations on behalf of the seller.
Transaction Coordination: Escrow and title companies do not manage the entire transaction process, including communication with buyer agents, lenders, appraisers, and other parties involved.
Compliance Management: They do not ensure compliance with MLS rules, manage status changes, or protect sellers from potential fines and violations.
Check out our Transaction Management Service to see how our Transaction Management Service helps you manage all the legal documents once you find a buyer.