Escrow agreement-Lease Options,
Why is escrow important part of any deal?
The escrow is the third party in any transaction. This third party is authorized by the first party to make payment or any kind of delivery to the second party when the conditions of the contract have been fulfilled.
There are various types of escrow arrangements such as
Escrow agreement is a convenience for all the people – the seller, the buyer, the lender and the borrower. It ensures that unless the minimum criteria have been met with no transfer of funds or property my take place. Only when all the instructions that were given in the escrow agreement and were agreed upon that the disbursement of the fund is made.
The escrow is a neural person who has to be non-biased and must be able to follow the instructions accurately
Must process and coordinate the flow of documents and funds until all the criteria have been fulfilled by both the parties.
The escrow also is responsible for the formation of the final statement for both the lender as well as the borrower. This statement is known by the name of settlement statement that has all the charges and cost that are a part of the transaction that was arranged for.
The escrow agent helps the borrower by facilitating in the signing of the loan documents.
The closing of escrow agreement can only be done when all the terms and conditions mentioned in the agreement have been met with.
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