Today, we have an absolute treat for you! As you know we’ve been partnering up with many people in this whole real estate process and in doing so we’ve actually chosen an amazing escrow company to work with. We strongly recommend working with Juliana Tu.
She has years of experience. People on her team can speak many languages. Trust me, once you hear her speak, you’ll know why we’ve chosen her. We want only the best for our clients.
Juliana has so much knowledge to share that she actually wrote a book called ‘The Art of Escrow’ We hope you enjoy this informative interview!
Interview with Juliana Tu
So what is the purpose of having an escrow?
The escrow holder is an impartial third party who handles the transfers of the property and funds between a buyer and a seller. The reason for having this is because there’s usually a lack of trust between the buyer and seller. Because of this, there might be a necessity for having a binding contract, especially when there is a For Sale by Owner.
An escrow also handles the payoff; so we are a clearinghouse for all leans and debts against the seller before the property is transferred to the buyer.
What are the basic characteristics of having this third party?
1. Confidentiality: we need to be confidential with personal information from both parties.
2. Impartial: We do not take sides.
3. No legal or financial advice: When there is a question that concerns something that is of legal or financial nature, we ask the parties to contact their legal and financial advisors.
When the purchase contract is accepted by both parties, the contract is given to the escrow holder and that becomes the map for which the escrow holder is going to follow in order to complete the transaction.
There are a few things we look for in the purchase contract:
1. Is there a new loan?
2. Are there certain things that need to be confirmed before closing such as termite inspection or repair work?
One of the other things an escrow holder does is open up a preliminary title search. We need to make sure the seller is that actual owner of the property and we need to find out what kind of leans and debts are against him. All of these things need to be paid off before escrow is closed.
