Escrow is a standard part of nearly every transaction, be it personal or business. The concept is relatively simple: one party, usually a buyer, puts up money toward the transaction that is held by a third party until all conditions of the agreement are met. This is usually the case in real estate arrangements. A buyer will put up a percentage of the negotiated selling price. The money will be in kept in escrow until the closing occurs. The earnest money is typically applied to the purchase price. The same principal applies for insurance and tax costs, which are included in the buyer’s mortgage payment. The funds are held by the bank or other party, who pays those bills on behalf of the homeowner.
Here are some business situations in which escrow may be used:
- The sale of equipment or capital items;
- Projects and proposals;
- Services, such as an artist agreeing to perform, but a percentage of the payment being placed in escrow until the performance is satisfactorily concluded;
- The sale of real estate.
In all cases, the escrow funds are held by a disinterested third party until the provisions of the contract are completed. In business, an attorney is an appropriate person to the hold the escrow. When you use Steve Mills Attorney to service your escrow, you can expect:
- Use of our Interest on Lawyers Trust Account (IOLTA) client trust account, to administer the funds;
- The IOLTA is monitored by state attorney general authorities, which is a benefit of consulting an attorney for escrow needs;
- Unparalleled security of the deposited funds;
- Personalized service
The next time you need to use escrow, give us a call. We’re ready to serve you.