Real Estate Escrow
The primary purpose of an escrow for a real estate title transfer or closing settlement is to have a trusted, neutral stakeholder (Mdoreh EScrow Service) hold the seller’s deed to the property, which will be delivered to the buyer upon payment of the sales price and fulfillment of other sale conditions. The estate escrow is mainly used when both transaction partners do not reside in the same location or country.
Our duties in the real estate transaction include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with the instruction; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms funds in accordance with instructions and provide an accounting for same : the Closing or Settlement Statement.
Why do you need an Escrow?
Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. We have the obligation to safeguard the funds and/or documents while they are in our possession, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
When you are dealing with someone you do not know, you also need an escrow like Mdoreh to validate the documents and identity of both transaction partners in-order to make dealings safe to both the buyer and the seller.
The challenge of Real Estate Escrow
Real Estate Escrows are usually the most difficult Escrow to handle because it involves the physical appearance of a broker in the sellers country of resident which is sometimes, difficult to handle when the seller and the broker are distant from each other.
Another challenge that may occur is when the Broker does not have the feel and mind of the buyer in accessing and rating the physical property where broker may “Okay” the transaction and the buyer “Rejects” it. In cases where we do not have a broker in the sellers country, the escrow transaction may not go through.
How do Mdoreh handles Real Estate Escrow
Real Estate Escrow follows the 3 S.E.P.
When a sale is initiated, a broker from the sellers country is invited to inspect the property to fit the description and demands of the buyer. The broker will have to physically inspect the property and validate the document supplied from relevant authorities within the country.
When this verification is done, the broker takes possession of the property document and mandates the seller to send the funds for the purchase to seller. On reception of the fund, the document is sent to the buyer in the destination country by the escrow using a suitable delivery carrier.