What The Difference Between Title and Escrow Services?
Title and Escrow in LA –
Title and escrow are two terms that are often used interchangeably in the context of real estate transactions, but they actually refer to two distinct aspects of the transaction process.
Title refers to the legal ownership of a property, which is established through a title search and the issuance of a title insurance policy. A title company is typically responsible for conducting the title search, which involves reviewing public records to ensure that the seller has clear and marketable title to the property.
If any issues are discovered during the title search, the title company works to resolve them before the transaction is completed. Once the title search is complete, the title company issues a title insurance policy to the buyer, which protects them against any future claims on the property.
Escrow Accounts in Los Angeles
Escrow, on the other hand, refers to the process of managing the funds and documents involved in the transaction. An escrow company is typically responsible for holding the buyer’s funds and managing the transaction process from start to finish. The escrow company ensures that all necessary documents are signed and filed, and that all funds are disbursed to the appropriate parties at the appropriate times. The escrow officer acts as a neutral third party to ensure that the transaction is completed fairly and in accordance with the terms of the purchase agreement.
While title and escrow are distinct aspects of the transaction process, they are closely related and often provided by the same company. In fact, many title companies also offer escrow services as a way to provide a one-stop-shop for all aspects of the transaction process.
Overall, understanding the difference between title and escrow can help you navigate the real estate transaction process more effectively. Whether you are a buyer or a seller, working with a reputable and experienced title and escrow company can help ensure that your transaction is completed smoothly and with the protection and transparency you need. Contact us to learn more about our escrow services in Los Angeles.