An escrow is a neutral person or company that:
a) Gathers together the buyer’s deposit money and loan proceeds in order to pay the seller the demanded purchase price for a property;
b) Obtains a deed from the seller to transfer title to the property to the buyer; and
c) Makes sure that the buyer gives the lender an enforceable mortgage for the monies loaned to purchase the property.
Title insurance is typically obtained for both the buyer and the lender. The buyer is insured that it owns the property. The lender is insured that it has a valid mortgage to secure repayment of its loan.
Escrow and title are very complicated and confusing. Let me help you fully understand the process and the agreements you are undertaking.
