Escrow is a legal process that focuses on protecting the interests of both parties involved in a transaction. Historically escrow was primarily used in real estate transactions such as change in ownership or title. Both parties involved would utilize an intermediary known as an escrow agent, who ensures each party is adhering to the agreement.
For example, if one party wishes to buy a house then they will transfer funds to the escrow agent. The selling party will then transfer ownership of the house over to the buying party. Once goods or services have been rendered, the funds held in escrow will be transferred over to the selling party.
Escrow is a controlled payment process in which a third party secures a transaction between a buyer and a seller. Funds related to the transaction are held in a FDIC insured bank to guarantee security for both parties. This allows both sides the same security and mitigates any risks inherent to transferring goods. Escrow is useful for risk mitigation due to the third party verifying, tracking, and securing the funds until both parties are satisfied with the arrangement.
Escrow has historically been used for transactions where large sums of money are involved or there is a great deal of compliance requirements before a deal can be made. However, with the rising popularity of online transactions and private sellers escrow is a useful tool for any transaction where the parties desire more financial security. Escrow works in a few basic steps:
1st American Escrow is dedicated to providing escrow solutions and risk mitigation through a team of highly experienced professionals who are dedicated to integrity and service to their clients. For over 20 years 1st American Escrow has been securing transactions and providing a protected payment process to allow our clients to work
more efficiently and securely. Numerous charter operators and professional travel companies have utilized Shelby's escrow services resulting in the transfer of over one billion dollars in escrow funds. 1st American Escrow is partnered with multiple FDIC insured banks located around the U.S. and works with numerous financial institutions around the world.
1st American Escrow is licensed, bonded, and insured, and subject to regular independent audits of our books and records. We hold your money in separate FDIC-insured escrow accounts, and we follow strict rules, regulations, and best practices guidelines in the conduct of our business.
This information has been provided in order to inform you about some of the aspects of Escrow, including a clarification of the role of the Escrow Holder and knowledge that will help you through the Escrow process. Entire books are written that explain the many elements of Escrow; this writing is intended to provide an overview of the Escrow processes only.
Escrow can be used for any transaction but is primarily used when large amounts of funds are being transferred between parties. This can personal purchases such as a used car, boat, furniture, house, collection of antiques, or memorabilia.
Residential Property Escrows
Planned Unit and Condominium Property Escrows
Income Property Escrows
New Construction Escrows
Short-sale Escrows
Multi-family Property escrows
Planned Unit and Condominium Property Escrows
Income Property Escrows
Short-sale Escrows
Multi-family Property escrows
Planned Unit and Condominium Property Escrows
Income Property Escrows
New Construction Escrows
Short-sale Escrows
1031 tax deferred exchange transactions
1031 Simultaneous Exchanges
Refinance Transactions
Loan Escrows
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