Title Insurance & Escrow Services

What is the difference between Title and Escrow Services in Real Estate?

​

Title

The word "title" refers to your legal rights to own, use, and dispose of a specific property. The title company insures the property's title with policies to the buyer and the lender to protect against problems with the property or the title.

​

Escrow

Escrow is the arrangement of one company holding and managing the payment of funds required for two parties in a given transaction. The escrow company or agent acts as the objective third-party between the buyer, seller, and lender to make sure that the contract (offer) is closely followed and that the money goes to all of the correct places when terms of the contract are met.

​

The Role of Title & Escrow

 

• The title agent researches the history of the property being purchased and transfers the actual property ownership between the seller and the buyer.

• The escrow agent manages all crucial documents that are required to close. They work with both parties to prepare transaction documents, and they coordinate with the lender. They also oversee the finances involved in the real estate transaction including the loan, closing, and recordation.

 

​

In short, the title agent gathers and researches the transaction while the escrow agent executes according to the terms of the contract.