As any real estate property seller or buyer can tell you, the escrow process is a very beneficial way to hold everyone accountable for the fulfillment of the negotiated terms of the deal. How so?
Well, with a neutral party like an escrow company, holding the funds for the sale, any part of the negotiated agreement that may fall through (which happens surprisingly often), will automatically return the money back to the hands of the original party.
This protects buyers from having their potential new home suddenly taken off the market and the owner absconding with your large deposit, never to be seen from again. This is especially important for properties that are “for sale by owner.” You never know who you’re dealing with, after all, and for some people a down payment on a home in California is their entire life’s savings!
Also, it may take a long time to come to an agreement on the terms of the sale. Negotiations may drag on, so keeping the money in escrow protects the seller as well, so that they are certain the person they are selling to can deliver the agreed price.
Contact Vision Escrow Group today for more information on how hiring an escrow company can benefit your real estate sale!