The understanding from escrow service was the neutral third party that was appointed and acted as the breeder/the guardian for the document and funds for the length of the process of the surrender of proprietary rights from the seller to the buyer or for the replacement of the ownership system from the seller's side to the buyer's side. Usually the two sides use the service escrow the service with the aim of the security. Because with help escrow service could be ascertained, if from the side of the buyer, the thing that was offered really real, or in fact this thing was not available, etc. Whereas from the side of the seller, useful to confirm, did this buyer really want to buy the thing that was offered, or only played, then whether the buyer really was able to pay the cost that must be paid to redeem the thing that wanted to be bought, etc.
Escrow service usually licensed and was arranged by a company that was assigned to gather, kept, and sent his money the buyer to the seller, be based on in the agreement instruction that was made by the buyer's side and the seller's side. Usually, when a buyer was interested buying the thing, then this buyer will immediately carry out the transaction with the seller's side, and when so the production of the agreement between the buyer and the seller, where being carried out by going through Escrow Service happened. And when item the thing that was wanted arrive at the hands of the buyer, then during the certain deadline, then Escrow Service will immediately do payment to the seller.
With Escrow Service, you could enclose the third party or the neutral side that was professional to help arranged all the matters that must be done covered the management of the mortgage, carried out some agreement, and other loans. Whether you already agree to payment with an agreement letter or decided to enclose your personal mortgage in the form of the valuable letter. Escrow service had the experience and the expertise that were needed to carry out the fast service in each plan discount. Escrow service could provide noteholders so as fund payment could be paid automatically when being due him payment time.
Like that was known, that there was gotten by 2 kinds escrow, that is: Two Party Escrow Agreement and Three Party Escrow Agreement.
- Two Party Escrow Agreement
Agreement that happened around 2 sides, that is the side buyer and the seller. Where in carrying out his transaction, used help of a body escrow, this was done with the aim of the security. The seller's side handed over what wanted to be bought by the buyer's side, through a body escrow, that afterwards by escrow was continued to the buyer's side.
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Three Party Escrow Agreement
Agreement that happened between 2 sides, that is the buyer's side and the seller. Where in carrying out his transaction, was carried out through a body escrow, with the aim of the security. In this case, 2 sides, that is the seller's side and the buyer's side used the service escrow in carrying out his transaction. The buyer's side ascertained what will be bought by him through the body escrow. So also with his seller, also ascertained the capacity bought from the buyer through the body escrow. If both of them have been, just sure the transaction was carried out. That is from the buyer's side handed over the obligation that must he did to buy the thing that was offered, and the seller's side also met bore he replied in handing over the thing that was bought by the buyer's side.
Along with will be explained concerning the instruction that must be paid attention to in escrow service, that is:
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Who the owner from escrow. You could see him through the page website available.
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The estimate of time began and the process ending escrow. So as to be able to be estimated when the process of acceptance of money will happen, and when the process of payment must be carried out by the side escrow.
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How many documents and money that in deposit in the bank. This depended on the number of funds that must in paid to the seller's side.
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How the side escrow received and kept money. Through the credit card, or through the transfer of the fund directly, or even through paypall.
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The authority from the agency escrow in spending the fund for the insurance cost, and other fees.
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The distribution of the schedule for wealth tax and the insurance.
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Pawning payment beforehand, especially for each mortgage.
By: Christine