Realtors often field numerous questions from their clients about the escrow process. Being equipped with clear and concise answers is crucial for building trust and managing expectations.
Here are some common escrow FAQs and suggested responses:
• What is escrow? Escrow is a neutral holding account managed by the title company (like Tier 1 Title) where funds and documents related to the real estate transaction are held until all conditions of the purchase agreement are met.
• Why do I need escrow? Escrow protects both the buyer and the seller by ensuring that funds are only released and the property is transferred when all obligations are fulfilled.
• When are the funds released from escrow? Funds are typically released after the closing documents are signed, all necessary conditions are met (e.g., loan funding, title clearance), and the deed is recorded.
• Who controls the escrow account? The escrow agent (Tier 1 Title) acts as a neutral third party and follows the instructions outlined in the purchase agreement.
By providing these basic answers, realtors can help their clients understand the fundamental aspects of escrow and alleviate potential anxieties. Tier 1 Title is always available to provide more detailed explanations and address specific client concerns.
