How Does a Title Company Handle Escrows in Ohio & Florida?

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Escrow is a process that ensures that a contract or agreement is fulfilled, or at least the financial requirements are met. A buyer and seller work with an escrow agent or title company to complete an escrow. Once individuals enter a contractual relationship, hiring a professional to work with both parties, such as a title company, ensures a smooth transaction. This article looks at both parties' questions about the escrow process and how a title company can help both sides.

Can a Title Company Handle Escrows?

Since escrow mainly exists in real estate transactions, it makes sense that a title company can handle escrows. The title company is a professional organization who deals with real estate transactions daily. Additionally, the title company serves as an intermediary between the buyer and seller. A buyer and seller could choose to work without the professional guidance of a title company, but this requires time and effort. An established relationship between the two parties could reach the goal quicker than if they went without an agent or attorney.

How Does a Title Company Handle Escrows in Ohio & Florida?

Title companies in both states typically handle escrows. Escrow agents in these two states need to follow at least nine different laws that pertain to the escrow process. For example, the State of Ohio has a “Good Funds” Statute, requiring funds due at closing more than $10,000 be wired to the title company.

Title companies are involved in escrow as escrow agents. Title companies ensure that buyers and sellers avoid being scammed into paying more than their obligations or fail to pay what they promised. Clients must remember that these escrow agents must follow specific laws and regulations in both states, and they may not be able to assist the clients if they do not follow these laws and regulations. One of the significant tasks of escrow agents is to review any information provided by clients before making a closing agreement and signing legal documents.

Involvement in the settlement process

Expedient Title is an agent that not only handles escrows in our day-to-day business but are also involved in the settlement process. Escrow agents are involved at various points during this process; for example, they are involved in reviewing documents and contracts during the first stages of the closing process. In addition, they are often involved when sellers need to provide additional information about their property.

Therefore, escrow agents handle the entire closing process. For example, the buyer's attorney may want to review the title search documents in more detail. Title agents sometimes become involved when they help sellers navigate ordering Condominium or HomeOwners Association documents and payoff statements. Furthermore, escrow agents get involved after the transaction to provide additional services. For example, they help buyers record transfer documents and mortgages when applicable, as well as issue the Owner’s and/or Lender’s Policy of Title Insurance.

Like any other service, a title company helps buyers and sellers with escrow. Our Title company will check out the details of a real estate purchase contract to ensure that it complies with the laws and regulations in either Ohio or Florida, wherever the property is located.