Title vs. Escrow
Whether it is your first time or fifth time buying a home, the process comes with a tremendous amount of moving parts. This includes third-party companies that represent both the buyer and the seller.
Do you know the difference between Title and Escrow? If you don’t, you’re not alone. Many people use the terms interchangeably, which isn’t accurate. They are two very different parts of the real estate transaction.
ROLE OF TITLE
The Researcher
- Take into account background information about the property that is being purchased.
- Transfer the actual property ownership between a seller and buyer.
Information they gather
- Does the seller own the property and can they transfer the ownership of the property to the potential buyer?
- Are the property lines correct?
- Are there any liens that need to be addressed?
ROLE OF ESCROW
The Gatekeeper
- Manage all crucial documents that are needed to close.
- Where all of the research is executed upon.
Role with the buyer and seller
- Works with buyer and seller to prepare documents that are needed for the transaction.
- Coordinates with lender to get the right information so that the loan documents arrive in a timely manner.
- Oversees the financial aspect of a real estate transaction, including:
- Lender’s loan documents
- Legal documents that are required to close and record the sale