Facts Related To Escrow Service in Bethlehem and Nazareth, PA

Posted by TraditionalAbstractPA on September 4th, 2021

Property transaction involves many formalities for legalizing the transfer of land, home, or commercial establishment. While the primary decision and agreement pertaining to the same lie with the buyer and the seller predominantly, it is advisable to request escrow service in Bethlehem and Nazareth, PA, by getting in touch with professional agencies that offer the concerned facilities.

A prospective property buyer may use the services so that the sum of money paid is to the right party following the conditions of sale. The procedure associated with an escrow account consists of the following:-

An agreement made to purchase property requires the investor to deposit a sum of money in good faith. Also known as earnest money, the deposit is an indication of the seriousness of the buyer. This works both ways, with the seller earning the right to retain the money when the deal falls through due to the investor\'s fault. On the other hand, the money held by a third party as escrow will be considered part of the buyer\'s required down payment.

An escrow account will be set up to hold the money until the transaction is done satisfactorily. There are a few exceptions, however. The escrow money may be retained with the account remaining intact even after the property is sold. Such an eventuality occurs for any of the following reasons:-

· The holdback may occur when the seller can remain in the property for a specific reason. The period is limited and may be less than a month

· Discovering a defect in the property after the transaction may result in legal issues prompting the escrow holdback to remain in force

· The construction work may remain pending after the transaction. This makes it necessary for the new owner to honor all financial obligations after the new home is ready for occupation

A majority of first-time homeowners take escrow services for granted. However, it is vital to choose a seasoned company to deal with real estate transactions. Lack of expertise on the part of the third party can also make or break a transaction. The right way to find the best company to act as a third party to hold the earnest money would be to check the following attributes:-

· Reputation- it is essential to check the reputation of an escrow company before hiring one. A proven track record with clients endorsing their services is a positive point in favor of the company.

· Experience- It would be a risk to hire a wannabe escrow company as there is every chance the company fails to serve the need. Experience counts here. It is advisable to opt for a company with long years of experience in the same field.

Apart from the exchange of money, the buyer needs to be careful about selecting the right property. Hiring an abstract title company in Lehigh Valley and Bethlehem, PA, enables a property buyer/seller to obtain the required records as a synopsis.