canstockphoto4224483With the continuous growth and development of online businesses, having an Escrow account has become a necessity. Online transactions are very risky not only for the buyer but also for the seller. Unless the website you are dealing with is one which is reliable and proven trustworthy, you may not be safe from possible fraud and deception. In order to protect your accounts and keep online transaction hassles to the minimum, it is important for you to have an escrow account.

 

What is Escrow?

Escrow generally means a fund that is delivered to a neutral third person known as the escrow agent. The escrow will be used whenever you enter into transactions such as lease, sale or mortgage. The escrow agent always makes sure that the funds will never be used inappropriately and that it will never be released unless the requisites for its release are complied with. Since your agreement with your escrow agent is founded upon trust and dependence, it is very important to choose an escrow company which you can truly rely on.

 

How does Escrow work?

Every individual involved in any transaction online can work with an escrow company to prevent fraud. During an online transaction, the buyer and the seller, and in some instances, the lender and the borrower, comes up with certain arrangements on the terms and conditions of the contract. This contract of sale, lease or mortgage is considered as the law governing the parties.

After the perfection of the contract, it is signed by the parties and is delivered to the escrow agent. The agent then examines the terms and conditions of the contract between the parties. Before the escrow is “closed”, the escrow agent makes sure that the agreement is done following the requisites for escrow as provided by law. After making sure that all requirements have been sufficiently complied with, the account will be “closed” and all transactions will be in the hands of the escrow agent.

While the requisites for release of funds are not yet sufficiently met, the seller, the mortgager or the lessor cannot receive any amount from the escrow agent. The buyer, mortgagee and lessee, being the passive parties in the transaction, cannot benefit as well unless the terms and conditions have been complied with. In contracts of mortgage, where there is retention of property, both private and public, the escrow agent is also responsible for the payment of taxes, insurances and other obligations attached to such property. All of the actions of escrow agent are dependent on the law governing escrow, the terms and conditions agreed upon by the parties and the authorization of the parties.

Once all the terms and conditions have been complied with, the escrow will eventually be closed with a settlement statement prepared by the escrow agent.

 

What are the Best Companies to use?

The main objective in hiring an escrow company is to have secured transactions. If so, you need to deal only with companies you can completely trust. One wrong move of an escrow agent can make your funds disappear in a blink of an eye.

With their proven reliability and competence, the following escrow companies online have been rated as among best. Here are two of the escrow companies whom you can entrust your funds to:

1. Escrow.com

Escrow.com is a licensed and accredited escrow company which is based in the US. It is among the pioneer companies in the escrow service industry and has been growing since 2013. Escrow.com complies with several laws and regulations governing escrow transactions and can be trusted when transacting for almost anything sold online.

2. The Heritage Escrow Company

The Heritage Escrow Company is another good choice for escrow services. The company has several locations in California and has been serving clients for some time. More information about the company can be known when you visit their official website.

 

A good Escrow company will not only help you in your transactions but will also protect you from harm. If you want a smooth sailing online transaction from time to time, all you need to have is a reliable, competent and trustworthy escrow company. For more information about escrow.com, you can visit their website or contact their local service provider.

Tagged with:

Filed under: Make MoneyMake Money OnlineMoneyPersonal Finance

Like this post? Subscribe to my RSS feed and get loads more!