What is Escrow?
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. Escrow is a way of transferring or exchanging property and/or money using a neutral third party. Escrow includes depositing (with a neutral third party) funds, documents, and the instructions essential to complete the transfer. The California Escrow Law: Section 17003 of the Financial Code: provides the legal definition.
Why Do I Need an Escrow?
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 the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
How Does Escrow Work?
When you put money in escrow it is held by a neutral third party (the escrow offer). The escrow officer works for both the lender and the borrower. The agent¡¯s function is to execute the instructions agreed upon by both parties. The funds will then be released after all the terms of the agreement have been met. Each escrow, although following a parallel pattern, will be different in some respects, since it deals with your property and the specific transaction at hand.
The duties of an escrow holder consist of: 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 funds in accordance with instructions and provide an accounting for same: the Closing or Settlement Statement.
Who Chooses the Escrow?
Depending on the rules of the state it will either be the buyer or the seller who chooses the escrow company. The selection of the escrow holder is normally done by agreement between the principals. If a real estate broker is involved in the transaction, the broker may recommend an escrow holder. However, it is the right of the principals to use an escrow holder who is competent and who is experienced in handling the type of escrow at hand. There are laws that prohibit the payment of referral fees; this affords the consumer the best possible escrow services without any compromise caused by a person receiving a referral fee.
How long does the escrow process take?
It depends upon the inspection period agreed upon by both parties, the buyer¡¯s payment method, delivery time from seller to buyer, and the seller¡¯s selected disbursement option. Generally, most escrow purchases can take from 5 to 20 days.
Where does Ace Escrow have servicing locations?
Ace Escrow has offices in Garden Grove, Hacienda Heights, and Los Angeles. We are actively expanding and adding new locations.
If there is a dispute, how do funds get released?
The dispute mechanism is negotiated among the escrow agent and responsible parties for inclusion in the escrow agreement prior to execution. Typically, in the event of a dispute, the escrow agent holds the escrow (funds, property, etc.) until receipt of a final court order, arbitration award or joint written instructions directing the escrow agent to disburse funds from the escrow account.
Can Ace Escrow hold assets other than cash in escrow?
Yes, we can hold a variety of other assets such as securities, title documents, accounts receivables and formulas/source codes.
If there is not a physical Ace Escrow office in my local area, can Ace Escrow still assist me with my escrow arrangement?
Yes, Ace Escrow has a diverse, dedicated team prepared to support your escrow requirements anywhere you might be. Please contact us for further information.