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Risks In The Real Estate Market: How Escrow Can Protect You From It

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By : Fredrica Smith    99 or more times read
You may have already come across the idiom ‘in trust as an escrow’. And that is exactly what they sell to their customers – trust.

Because of this, Escrow now plays a major role in the world of real estate market. Where high-value assets are involved, it does not hurt to have some security, even if you have to pay for it.

As the idiom goes, Escrow can provide its clients with the level of assurance and protection that was once not possible. And now, more and more individuals and businesses are seeking the professional services of these independent third party entities to aid them a fair and safer transfer of properties and other assets.

If you are new to the real estate market, you should understand that like in any other market, there are dangers and risks associated with it. Escrow has gained its popularity and status because of the protection it can provide from some of those dangers.

Understanding these dangers and how Escrow can protect you from it will make you appreciate more its function and importance.

Dangers in real estate market
The world of real estate market has always been infested by fraud and other similar risks. Inexperienced individuals may end up purchasing properties that does not match the agreed specifications. There are also those who end up buying a property that is owned by another. Some unknowingly purchased properties troubled by unpaid debts and mortgages.

Function of Escrow
Frauds usually happen when inexperienced buyers go into a direct transaction. This must be avoided at all cost. Escrow can function as a middle man between the buyer and the seller. Both the seller and buyer will deposit the properties and documents that will be transferred in the transaction into the Escrow holder’s account. And it is only after the detailed instructions of both the seller and the buyer have been met, that the Escrow holder will distribute the properties and the documents.

How Escrow can protect you

  1. Detailed instructions - whether you are the buyer or the seller, you will be asked to provide the Escrow holder a detailed instruction of the conditions and requirements that must be met before you agree to close the deal. Escrow will monitor and check if these are met to protect your interests.

  2. Verification – Escrow will also verify the documents deposited to its account. For example, concerning the sale of a land, it can verify if the deed title is indeed named to the person selling it. This way, you can prevent buying from an inauthentic seller.

  3. Safekeeping of deposited funds and properties – the Escrow agent will not release or distribute the assets and documents deposited in its accounts unless all the instructions, conditions and requirements have been met. No transfer of property will occur until the necessary requirements have been successfully complied with.

  4. Confidentiality – the buyer and the seller can also have confidence that the Escrow agent will treat all the information regarding the transaction as confidential. Only the parties directly involved in the transaction will have access to the information.
The Real estate market can be an enjoyable, satisfying and lucrative experience for you. Whether you are a homeowner, a buyer, a landlord or simply a real estate enthusiast, get to know more about the latest in the real estate market now. Read more about it here: Crossroads Gilbert AZ Homes for Sale, Cooley Station Gilbert AZ Homes and Foreclosed Homes for Sale in Gilbert AZ.

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