🔐 What Is Escrow Service from a Title Company?

Escrow service from a title company refers to the secure handling of money and documents involved in a real estate transaction. The title company acts as a neutral third party that holds and disburses funds only when all agreed-upon conditions are met.

🧾 How Escrow Works

1. Opening Escrow

• Once a buyer and seller sign a purchase agreement, the title company opens an escrow account.
• The buyer deposits earnest money into this account to show good faith.

2. Holding Funds Securely

• The title company holds:
  • Earnest money
  • Down payments
  • Loan proceeds (from lender)
  • Seller’s payoff funds
  • Taxes and insurance premiums (if applicable)

3. Managing Documents

• The company gathers, holds, and eventually delivers:
  • The deed
  • Loan documents
  • Closing disclosures
  • Inspection reports
  • Title insurance policies

4. Ensuring All Conditions Are Met

• Escrow remains open until all the terms of the purchase agreement are satisfied, such as:
  • Title clearance
  • Loan approval
  • Final inspections
  • Signing of documents

5. Closing Escrow (Disbursement)

• After everything is verified:
  • The buyer gets the deed (ownership).
  • The seller receives payment.
  • The lender receives loan security documents.
  • The deed is recorded with the county.

✅ Benefits of Escrow Service

• Security: Protects both buyer and seller from fraud or missteps.
• Neutrality: Ensures no one gets paid or receives property until all conditions are met.
• Compliance: Helps all parties stay in line with real estate laws and contracts.