Escrow on a Property: Keep Your Home Loan Deposit Safe

22 Feb 2021

Whether you’re a buyer or a seller, using an escrow account can provide peace of mind throughout the home buying process. What is an escrow account and how does it work? “In escrow” refers to funds and documents which have been transferred to a third-party that holds them “in escrow” until the conditions of the agreement between buyer and seller have been met. In the case of real estate, the escrow process starts with the signing of the offer to purchase and concludes with the release of funds to the seller once the property deal has been closed and both buyer and seller are satisfied that the terms of their agreement have been fulfilled. The buyer benefits in that they are assured all their needs stipulated in the offer to purchase will be met before the funds are released to the seller. For example, when it comes to home inspection, the escrow account will hold back funds until the buyer is satisfied that the seller has conducted the necessary repairs and maintenance. In this way, the escrow account acts as a kind of safe box where everything is kept secure until the deal is closed. Read the full article https://www.ooba.co.za/resources/escrow/

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