How to Open a Real Estate Agency Escrow Account
When undergoing any type of real estate transaction, it is crucial to make sure that any monies, including security or earnest money, be placed in an escrow account. Escrow accounts are designed to protect both the buyer and seller, or the landlord and tenant from any misuse of funds for purposes other than those designated in the real estate agreement. An escrow company ensures that no funds are exchanged and that no property changes ownership prior to the completion of all transaction requirements.
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Instructions
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Acquire the necessary funds from the buyer.
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Arrange to have the transaction money deposited into an escrow account with an reputable escrow company of your choosing.
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Send a fax or email requesting an escrow form to the escrow company if you are not within the driving area to pick it up in person.
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Provide the agent at the escrow company with all of the information regarding the purchase. Include all details of the transaction.
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Wait for the escrow company to inform you that the buyer's check has cleared.
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Wait for the escrow agent to verify that all transactions have been successfully completed in accordance with the terms of the contract agreement.
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Review the contract and acknowledge that all terms have been met satisfactorily. Acknowledge your acceptance of the transaction.
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Wait for the buying or selling agent you are contracted with to acknowledge that all terms have been met satisfactorily and that he acknowledges acceptance of the transaction.
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Wait for the escrow agent to verify both parties' acceptance of terms and release the funds to the seller.
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