The Escrow Process: Part 1 - What is an Escrow?
An escrow, by California definition, is the purchase process we go through for buying real estate.
In reality, escrow is actually and entity, in the form of an escrow company. They are the neutral 3rd party that regulates what buyer and seller are supposed to do, and when, according to the signed purchase contract.
That, in my opinion, is the cool part about buying property in California. We have this neutral 3rd party that makes sure the contract is carried out according to the terms agreed upon, and that everyone does what their supposed to do in a sort of chronological "step-by-step" procedure.
Some other states do not have escrows as the medium when buying property. They use attorneys, which in essence creates a "buyer vs. seller" approach to buying property. I'm not a huge fan of this approach. In my opinion there is too much left to potential manipulation by one side without as much of a system of checks and balances that an escrow provides.
This is Part 1 of a 7 part series in which we will discuss the various elements of an escrow in great detail:
Part 1 - What is an Escrow?
Part 2 - Who are the Various Parties and their Roles in an Escrow?
Part 3 - What are Different Escrow Fees and what do they mean?
Part 4 - What are the Legalities Surrounding an Escrow?
Part 5 - Escrow Timelines brokend down in Layman's Terms
Part 6 - Escrow Cancellations: Why and How does This Happen?
Part 7 - The Escrow Closing: The Details of Doing the Snoopy Dance
