Choosing the right escrow company is essential to successfully buying or selling a home. An escrow company acts as a neutral third party that holds funds, documents and instructions between the buyer and seller, ensuring that all terms of the transaction are met before the sale is finalized. Consider the following when looking for an escrow company.

Do they have a good reputation?

The escrow company you choose should have a solid reputation in the industry. Look for a company with years of experience in handling real estate transactions, especially those that involve the type of property you’re buying or selling. Ask for recommendations from your real estate agent, friends or family members who have had positive experiences with their escrow services. Online reviews and ratings can also give you insight into the company’s reliability and customer service.

Are they licensed?

Make sure the escrow company you choose is fully licensed. Escrow companies must meet specific legal requirements and maintain licenses to operate in order to ensure they adhere to ethical standards and best practices. You can verify a company’s licensing status through your state’s regulatory agency or real estate commission. A licensed company provides an added layer of protection and peace of mind, knowing your funds and documents are in trusted hands.

How are they with communication?

Look for a company that keeps you informed throughout the process and explains each step clearly. Whether you’re the buyer or seller, you’ll want an escrow agent who responds promptly to your questions, explains terms and provides regular updates on the status of your transaction. Transparency is also important. Some escrow companies may charge additional fees or have hidden costs. Before signing any agreements, ask for a full breakdown of the company’s fees and ensure you understand the charges involved in your transaction.