Title Companies/Escrow Companies
An Escrow Company (or Title Company) plays an integral part in any real estate closing. Their involvement begins when an executed contract is delivered to the Escrow Company along with the earnest money associated with the contract. Upon receipt, the Escrow company begins a Title Search and when title is deemed ‘clear’ prepares a Title Insurance Policy. This policy is required by lenders to protect their investment against any future claims by any party to the property.
Furthermore, the Escrow company assigns someone to manage the closing and to facilitate the closing by being in contact with the buyer & seller, agents for both parties, Lenders, etc. This person is called the Escrow Officer. The Escrow Officer collects all of the contract documents and lender documents and prepares the closing packet. This closing packet is then presented to the buyer and seller at closing where the escrow officer assists each party in going over the documents and signing them.
Finally, it is the Escrow Officer who distributes all signed and executed documents to the appropriate parties to ensure the successful transfer of title from one party to the other.
The Escrow Company is a disinterested third party and does not represent anyone in the transaction.