The escrow holder is a neutral third party. An escrow is a deposit of funds, a deed or other instrument by one party for delivery to another party upon completion of a particular condition or event. California Escrow Law Section 17003 of the Financial Code provides the legal definition.
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. The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with. Remember that as a principal the choice is always yours and be sure to choose an Independent Escrow Company, licensed by the California Department of Business Oversight. That way you know that you are dealing with a truly neutral party.
The principals (buyer, seller, lender or borrower) cause escrow instructions, in writing to be created, signed and delivered to the escrow holder. If a broker is involved, she/he will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents. The duties of the escrow holder include: following the instructions given by the principals to the transaction; handling the funds and/or documents in accordance with instructions; paying bills as authorized; closing the escrow when all terms and conditions have been met; and disbursing the funds in accordance with instructions and provide an accounting for same - the Closing or Settlement Statement.
The selection of the escrow holder is normally done by agreement between the principals. If a real estate broker is involved in the transaction, the broker may recommend an escrow holder, however, as a principal, THE RIGHT TO CHOOSE IS YOURS. Be an informed consumer and always choose an Independent Escrow Company, licensed by the California Department of Business Oversight. For most people, the purchase of their home is the largest financial transaction in which they will ever engage. The confidence our client's place in us every time an escrow is opened is a responsibility we take very seriously. Our team of professionals has earned an unparalleled reputation for excellence within the real estate community. Don't trust such an important financial endeavor with just anyone. Choose an escrow company with a proven record of success. Choose Appian Escrow Company.