What is Title and Escrow

The world of real estate has its own language and customs. Unless you are in this world on a daily basis; there is so much information and foundational knowledge it can seem overwhelming. For this reason, hiring a professional to represent your interest in one of the most important purchases in your life, simply makes sense.  This keys & connections article helps answer the question, “what is title and escrow?”.

One of the most common questions we find our buyers asking (whether this is their first home purchase or their fifth)  is: “What is title and escrow and what is the difference between the two?”. We wrote this article to help answer this question for you. Keep reading.

Escrow is responsible for coordinating the sale. They are an independent third party charged with the transfer of the property. They will be the company that you deliver your earnest money to at the very start of the purchase and the company you sit down with to sign the closing documents at the end of the sale. They will make sure the directions of the purchase and sale are followed and all monies are transferred in the correct manner.

Title actually provides a title insurance policy for your purchase. This policy ensures that the “chain of title” has been passed on correctly and there is not an outstanding heir or debt holder that will resurface and make a claim to the property. They will provide a report showing all encumbrances that go with the sale. You will have a chance to review this report.

This explanation just scratches the surface. If you would like to know more, please reach out, you can find our contact details here. We would love to talk with you further!