What Does an Escrow Company Do?
Fundamental Services Provided By Escrow Companies
Escrow is widely used in many business transactions where the buyer and vendor cannot produce a simultaneous trade of funds and goods or solutions and neither would want to supply first without the warrantee to receive later (neither party desires to risk being the one left without the cash).
To settle the trust problem between a buyer and vendor, a third party, called the escrow, can perform on benefit both purchaser and the seller to make sure that after a party satisfies its contractual obligation, the escrow will release to the party what it entitles in the trade.
Such escrow service is also normal practice in real estate transactions where the customer deposits money with the escrow and the seller delivers title documents to the escrow, and the escrow business will not release the funds to the seller or convey the title to the buyer until the funds and the documents are put with the escrow.
A part of the contractual obligations in a home mortgage agreement is for the householder to cover property taxes on time and keep the homeowner insurance up to date. To learn more about escrow companies visit http://en.wikipedia.org/wiki/Escrow and http://www.homesteadescrow.com/ to learn more.