Your Escrow Account is as Safe as the Strength of the Mutual Neutral Contract
The escrow system is a simplified third party financial arrangement catalyzing major financial deals. Essentially, the tripartite agreement involves a neutral third party who holds a set amount as a guarantor of payment at project completion according to the terms and conditions. Escrow services can be Government licensed organizations, or they can be independent organizations working with a broker or realtor service. In California, they classify the two categories as ‘licensed’ and ‘controlled’. You need to find a trustworthy agency. Check the various aspects of verifying the suitability of the services.
Check credibility parameters
First, inquire whether the service is a licensed agency, or is an independent organization. In the latter category, invest some research in finding the reputation of the company. Look up the following aspects in selecting a compatible escrow accounts facility.
- Confirm the digital security protocol of the service. If the transaction is online, you need to be sure of the money transfer safety parameters.
- Always verify whether the company has a brick-and-mortar office. Ask for the office address and verify it. (You have Google Maps). Make sure it is a genuine establishment. This also includes confirmation of the biometrics enrollment of the company. They must employ staff only after a clean background check.
Neutrality and accreditations
The service must be neutral. Since you are taking the initiative to look for the company, proceed with the discussions only after consulting with the other party in a transaction. Explain your choice of services, and if everything seems fine, proceed with a mutual discussion. Always make it a point to include the other party in communications with the escrow service. Inquire on the business accreditations of the service. See whether the company is a registered service at major business organizations at your state. You need to present certain documents proving your participation at the project. The other party also has the same obligation. Make sure you are fully aware of the paperwork submitted.
Check the contract
A compact contract is critical in any financial arrangement. Finding a suitable escrow service is not an exception. Ask for a sample contract for evaluation. See whether the clauses in the deal ensure complete safety of the transaction. If you are the assigned recipient on project completion, verify your end of the agreement. If you are the client, look up your end of the agreement. Make sure to discuss all apprehensions with the agency.
They must have a robust customer support system. Call up the phone number on their website. Explain your situation in finding whether they can assist you. Ask for referrals. Call up the referred numbers in interpreting the accountability of the company.
Full or installment options
You need to draw a three-party agreement. This would require a tripartite discussion at the offices of the escrow agency. Sometimes, online services arrange for video conferences in finalizing the deal. You may sign into a full-escrow, or an installment-escrow. In the second system, you need to set milestones for project completion. The company releases payments successively. Check all essential parameters into selecting the right escrow service.