Working with an escrow company has a number of benefits that apply to a wide range of financial transactions. A professional who is responsible for holding escrow provides protection to all the parties involved in a potentially risky financial exchange. This can include: stocks and securities, real estate, and other valuables. Let’s explore this concept further so you have a better understanding of what holding escrow means.
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An escrow account is used to safely hold funds for a temporary amount of time. The escrow provider is a neutral third party who completes the exchange only after all the conditions of the agreement are met. This is important, and it’s one of the main reasons that people rely on an escrow company. The valuables in the account cannot be released until specific predetermined conditions have been fully satisfied.
Stocks and Escrow
Shares can also be kept in an escrow account for your protection. Again, they’re temporarily held by a third party. In fact, sometimes a company may issue stocks in this manner. Generally, shares can be held for up to three years before they need to be cashed out, but in some circumstances you may be prevented from selling them before a specific date, even though they’ve been issued to you.
Real Estate Sales
Escrow doesn’t always involve a real estate transaction. It has other uses as well. If you’ve purchased a home in the past, you may have heard the word “escrow” for the first time when you bought your house. It’s almost always used in real estate. For example, maybe the roof needs to be replaced before the sale is finalized. Until the seller follows through on this agreement, the escrow company won’t release payment for the house.
Related Content: How to Spot a Real Estate Scam
When a woman chooses to become a surrogate for a family, she may want to use escrow for her protection. This means that an account is set up by an escrow agent to hold funds that will be used by the surrogate during her pregnancy. This provides a sense of security for all the parties involved.
Related Content: Benefits of Having a Business Escrow
Call Us at Bay Area Escrow
Holding escrow protects the interests of individuals and companies. Venues need the assurance that they will be paid after a wedding, while stage crews need to know they’ll be fairly compensated for a performance. An escrow company can handle both personal and professional escrow accounts.
If you need help with a large financial transaction, contact us today at Bay Area Escrow. Our office can be reached at (925) 831-9099.