Why Do I Need an Escrow?

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed.

In California, the escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow are in compliance.

Nationally, the word “Escrow” may be described as the type of account you set up with a Lender to impound your property taxes, insurance, and mortgage insurance payments. In California and some of the other western states, this word describes the settlement process and the “Settlement Service” industry.