What is Escrow?
The language involved in the sale and purchase of real estate is often dense, confusing, and intimidating. This is especially so during a person or company’s first few transactions, when the unique circumstances of each case are likely to introduce new and unfamiliar complications and quirks to a small but growing knowledge base. Lacking a full understanding of the terminology in the legally binding contracts that you are to sign makes you vulnerable to being treated unfairly, and could potentially result in your company entering into an agreement that does a tremendous disservice.
Escrow is a concept that is not typically encountered outside the context of real estate transactions. But within the realm of real property it functions as a key component of many sales agreements. Contact a Des Moines business lawyer of LaMarca Law Group, P.C., at (877) 327-2600 to speak with an attorney who can help you to better grasp the terms of any contractual agreement.
“Escrow” is shorthand for escrow accounts. Though this makes perfect sense to the professionals working within the mortgage industry, it complicates understanding for others by eliminating the word that gives the greatest clue into what is actually meant. An escrow account is established to hold certain monies associated with a real estate agreement aside for the purpose of paying specific costs and expenses. Commonly an escrow account will be created to address or retain funds for:
- Property taxes
- Home or mortgage insurance
- Deposits, closing costs, or other expenses that must wait until a transaction is finalized
If you are considering purchasing a piece of real estate or selling your business, then speaking with an attorney can protect you against many potential losses. Contact the Des Moines real estate lawyers of LaMarca Law Group, P.C., at (877) 327-2600.