If you are buying or selling a home, you are probably very familiar with the escrow process. However, if you are new to the real estate process, it may seem a little daunting. The escrow process is meant to help both the buyer and seller, to make sure that you are in agreement when it comes time to sign the final paperwork.
Escrow is essentially a safety net for both the buyer and seller during a real estate deal. The buyer of a property makes their payment through escrow, while the seller deposits their agreement through escrow. The escrow can only be closed, and the transfer of the title deed can take place when both the buyer and seller are satisfied with all the conditions laid out.
It is important to keep in mind that escrow is a legally binding process, and if any of the terms are not met, the entire real estate deal can be terminated, leading to financial losses for both parties. There are many reasons that the escrow can end, including:
- If there are financial problems that cause the payment by the buyer to not go through. In this situation, the seller can choose to keep the amount paid by the buyer in escrow as compensation for damages.
- If the seller does not meet all the requirements of the escrow, the buyer has the right to sue the seller and force them to follow through with the escrow, or pay some amount of compensation.
- If both sides do not meet the deadline of the escrow, they can come to a mutual agreement about how to proceed or end the sale.
For all of your escrow needs and to ensure that the process is as smooth as possible, contact Brighton Escrow in Hermosa Beach, California.