Escrow is a component of practically every real estate purchase transaction in California. Both parties to the sale of a property need an official third party to serve as a transfer agent when the funds are deposited for a real estate purchase. The holder of those funds and documents then assumes certain fiduciary responsibilities to both parties to the escrow agreement until the scheduled purchase event is complete. While it is typically a short process, it is assuredly a vital step in any real estate sale. And problems can arise when either party to the purchase agreement does not receive what they perceive as their ample consideration in the contract. This means that escrow owners and managers could easily find themselves in need of legal defense in civil litigation by an experienced escrow counsel like Griffin, P.C.
WHAT IS ESCROW?
Escrow is the process of depositing funds used in a real estate transaction with a third party for payment at a designated time. California law allows for either an independent agent or a licensed corporation to serve as the escrow agent. The escrow agent closes the deal and distributes the funds then transferring the property detailed in the escrow agreement after each party to the purchase has completed their responsibilities.
WHAT ESCROW AGENTS DO NOT DO
While there are specific requirements of an escrow agent regarding ensuring all taxes are assessed properly and fees for required inspections are completed, there are some duties that escrow agents cannot do. They are restricted from offering investment advice or other legal advice regarding issues that may be associated with the purchase. They essentially serve as a legal payment conduit that ensures all legalities are met with respect to the agreement and governmental requirements. In addition, they do not serve as a representative when the agreement is being negotiated by the primary parties to the purchase.
All California escrow companies and service providers who are operating in the escrow space can utilize Griffin, P.C. to protect your business operations.