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Very simply defined, an ESCROW is a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. This page is provided to help you understand what escrow is all about. We hope this reference will assist in answering some of your questions, and help make the process as clear and concise as possible. Use the menu above to learn about the various topics.
The principals to the escrow - buyer, seller, lender, borrower - cause escrow instructions, most usually in writing, to be created, signed and delivered to the escrow officer. If a broker is involved, he will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents.
The escrow officer will process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be "closed". Each escrow, although following a similar pattern, will be different in some respects, as it deals with YOUR property and the transaction at hand.
The duties of an escrow holder include: following the instructions given by the principals and parties to the transaction in a timely manner, handling the funds and/or documents in accordance with the instructions, paying all bills as authorized; responding to authorized requests from the principals, closing the escrow only when all terms and conditions have been met; and distributing the funds in accordance with the instructions and provide an accounting for same-- the Closing or Settlement Statement.
Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The Escrow Holder has the obligation to safeguard the funds and/or documents while they are in their possession and to disburse funds and/or convey title to the property only when all provisions of the escrow have been complied with. In most Eastern and Southern States, this function is performed by an attorney.
In California, only escrow providers such as Fortune Escrow are licensed and closely monitored by the California Department of Corporations (DOC) to act as NEUTRAL and INDEPENDENT escrow holders. Only with licensed escrow companies are the funds deposited in Trust Accounts and subject to DOC audits without notice. In addition, Independent Certified Public Accountants audit and prepare these company's annual financial statements particularly inspecting their compliance with minimum liquidity and other tests required by law.
Fortune Escrow, Inc. is an Independent Licensed Escrow Provider staffed by professionals who are knowledgeable and committed to providing personable, quality escrow services at a competitive price.
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