When buying real estate in Florida, whether you’re a buyer or a seller, it is important to understand that any deposits or monies paid in the transaction must be deposited into an escrow account. Any party who handles escrowed funds is legally required to have an escrow account, for example, licensed brokers, title agents and attorneys typically deal with monies paid in real estate transaction; therefore, they are required to maintain escrow accounts for such real estate transactions. You’ve probably heard about escrow accounts and the role they play in real estate transactions, but what exactly is an escrow account? And what does an escrow account do? These, among others, are questions that will be answered in this Article.
What is an Escrow Account? Is it necessary?
If you are new to real estate, it is essential that you understand what the word escrow means and further what escrow is all about. In most real estate transactions, parties to the transaction often require a demonstration of a commitment through the payment of a deposit. It is recommended that a deposit be paid by the buyer and that such deposit be held by an escrow agent in an escrow account. The rule regarding escrow accounts is that they are held by a third party and not the seller or the buyer. With the competence and professionalism that our Orlando Real Estate Lawyer presents, you can trust that your deposit is held by an attorney who is ready to comply with the fiduciary duties owed to the parties as an escrow agent in the transaction.
Every aspect of a real estate transaction has its legal framework, and the same applies to escrows. The holding of monies in escrow, by a third-party escrow agent, is a way to protect both the buyer and seller of a property. In a scenario where the payment of an escrow deposit is required, the contract will direct the buyer to deposit the monies with a mutually designated third-party escrow agent, and such monies deposited with the escrow agent in connection with the purchase/sale is then deposited by the escrow agent into an escrow account and released only when the escrow agent receives proper authorization to release such escrowed funds.
Escrow is necessary because it protects both the buyer’s and seller’s interests and ensures each party’s seriousness in meeting their respective contractual obligations throughout the course of the transaction.
How Your Real Estate Attorney Can Help Protect Your Rights And Ensure Rules And Laws Are Followed
Nishad Khan P.L-the Real Estate attorney can help draft a contract that will protect you from any unforeseen circumstances that might occur when buying or selling a property. The real estate attorneys Orlando also help create escrow agreements in connection with the sale and transfer of any real property.
To learn more about escrow, you should consult with an attorney. Our Orlando Real Estate Attorneys from the law office Nishad Khan P.L. have wide knowledge in the field of real estate and can offer you all of the information and guidance you require on escrows and escrow agents.