Dec 27 2007
What is Escrow Part 3: How do the parties benefit from an escrow?
From the “What is Escrow” series provided by Lori Tubbs, Chicago Title Insurance Company of Oregon.
How do the parties benefit from an escrow?
Both parties are assured that the transaction will be properly and promptly closed. Theseller will see that title will not pass to the buyer until the purchase price is fully paid, or the seller’s provision as to security for unpaid balances is fulfilled. If the seller intends to use part of the purchase price to satisfy liens, the escrow provides a satisfactory arrangement for paying off the lien holder. The buyer is assured that the funds will not be paid to the seller until the transaction is properly completed. If the buyer needs to use the land as security for a loan to pay part of the purchase price, the escrow guarantees the lender that title is exactly as required, and provides a safe method for delivery of loan proceeds or security documents.
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