What Is Escrow?
Real Estate Services in Calabasas, Oak Park, Newbury Park, Westlake Village
Imagine that your friend challenged you to a race and you both agreed that the winner would get a certain sum of money. Both of you give the money to a third party to be held until the end of the race. After you cross the finish line, one of you gets the prize. Your neutral friend acted as an escrow.
In terms of a real estate transaction, putting money in escrow means that a neutral agent holds onto the sum until all of the agreements and contingencies in the sales contract have been met. This arrangement protects both you and the seller. It protects the seller because it means that the money is there, and he or she will not undertake expensive renovations or repairs agreed to in the contract without the surety of payment. It protects you, because it ensures that the seller will go through with everything agreed to in the contract. You don’t have to worry that they will take your money and disappear without holding to their end of the agreement or before the home inspection passes.
Escrow allows buyers and sellers to negotiate the terms of a home sale safely. When the transaction is complete, the seller can gather what he or she is owed. The escrow holder – usually a title insurance company or an escrow company – will process the escrow according to the terms of your original agreement with the seller. Escrow is opened after the sales contract has been signed by both parties, at which point the agent places this contract and your deposit check “in escrow.” Escrow is closed when all terms of the agreement has been fulfilled and the real estate is yours.
Luxury Homes and Estates in Los Angeles & Ventura Counties
Lydia Gable has helped families throughout Westlake Village, Thousand Oaks, Agoura Hills, Oak Park, Conejo Valley, and Newbury Park find their Southern California home. The Westlake Village real estate agent lives, works, and plays in these communities, and can help you find the property that fits your needs and lifestyle. Call our office today and find out more about the team at Lydia Gable Realty Group!