Escrow Services Annapolis, MD
What is Escrow?
Escrow is a neutral third party who holds the keys, title, and money until the time of closing, so everything is exchanged safely, fairly, and simultaneously.
You don’t want to pay the seller of a home until they are ready to hand over the keys and ownership, right? As the owner, you wouldn’t think of handing over the title to your property and keys until you get paid, right? An escrow services company in Annapolis, MD is the key to making sure no one gets shortchanged in the process and ensures you’re properly putting money in escrow. At Capitol Title Group, we provide an efficient and affordable experience for our valued customers. Over our decades of operation, we have been recognized as one of the leading settlement companies with an exceptional record of customer satisfaction.
The Pros, Cons and Best Practices for Escrow
Each party is typically looking out for their own interests in a real estate escrow transaction. If a biased party controls deposit money, it can be harder to get your hands on it if the deal falls through. For this reason, listing brokers would rather hold the escrow money, and buyers agents would rather hold the money too. Too often this can end up with the funds being whisked away to the first party who claims them in a dispute. As a buyer it is always safer and smarter to have a third-party escrow services company in Annapolis, MD hold your funds. It dramatically increases your odds of getting them back if needed.
One of the potential cons for buyers at closing is the impact on cash required to complete the close of escrow, because of impounds for property taxes and insurance coverage. Depending on what day and month you are closing, the escrow officer will collect several months’ worth of payments to ensure these bills are paid. You can talk to your escrow officer about how to minimize this amount and the impact on cash due at closing.
As a buyer, seller, and agent, you should receive a copy of the Closing Disclosure, three days before the closing is scheduled. Make sure you review it carefully, ask questions until you understand it, and ensure all funds needed to close are liquid and available.
Is escrow safe?
Escrow is generally a very secure process. However, one of the biggest risks in this process today is wire and escrow fraud. Hackers and cyber criminals have been increasingly targeting real estate agents and their clients due to the large sums of money in escrow. They will often hack and spoof email accounts, sending fake wire instructions for hacking bank accounts. Be sure to triple check where money should be sent directly with your escrow officer through a trusted line of communication, prior to sending. Our escrow services in Annapolis, MD officer will help you transact in the most safest way possible.
The whole process of signing physical documents, wiring money, and holding money for days or weeks during the process is outdated. New technology, electronic signatures, online money transfer systems and blockchain, for instantly recording a sale and transfer of an asset will all help modernize, speed up, and secure the process of buying and selling real estate. As these things become integrated in the industry, make sure you do your homework and select a title and escrow company with a good reputation and who will work on your behalf in the transaction.
We welcome the opportunity to serve you in our escrow service in Annapolis, MD. Contact us today.