Benefits of escrow services for sellers
As a seller, one of your biggest concerns is ensuring that the sale goes through in order to receive your payment. Every transaction comes with risks, but one way to mitigate a potential derailment is through the use of escrow services.
An escrow service is a third-party who is not affiliated with either the seller or buyer’s party. An escrow service acts as an impartial intermediary, holding funds or assets on behalf of both the buyer and the seller until the contract has been completed. That way, both parties know their money is secure until the obligations of the transaction are fulfilled. Escrow services prevent fraudulent or malicious behavior, protecting both the buyer and seller during what is likely one of the largest financial transactions of their life.
There are many benefits of escrow services for buyers, but let’s look at the benefits on the seller’s side.
Escrow services protect against fraud. While no one wants to assume ill intention of another party in a contract, when large sums of money are at stake, you want protection just in case. Escrow services verify the legitimacy of the contract, ensure payments such as escrow are made, ensure the seller receives their final funds from the sale and make sure that the buyer receives transfer of the property.
Escrow services protect against non-payment. When a buyer deposits funds into an escrow account at the beginning of a real estate transaction, the funds are held by the escrow service until the contract is closed, at which point the funds are released to the seller to complete payment. Because the escrow service is already holding the funds, the seller doesn’t have to worry about the buyer not paying in full or delaying payment.
Escrow services minimize disputes. Because escrow services are a neutral third party, both the buyer and seller have a duty to meet their contractual obligations through the escrow service. If any issues arise that may put the transaction at risk, the escrow service can mediate and resolve them. Additionally, escrow services reduce the risk of legal action between the buyer and seller because they are both held responsible for carrying out the terms of the contract.
Escrow services offer numerous benefits for sellers and buyers alike. To find out more about what an escrow service can do for your next real estate transaction, no matter which side of the table you’re on, call one of Clear Title’s conveniently located offices.
Pensacola: (850) 361-4029
Pace: (850) 994-3838 Pine Forest: (850) 202-8518