Escrow account programs face changes in the industry that affect the way banks and title agencies do business. The home buying arena is continually affected by both political and economic title company news. An escrow agent may be doing great business one day and bankrupt the next. Escrow companies must follow the laws and regulations that are so often in flux.

Trends affecting escrow services take various forms. Real estate and mortgage professionals all are affected by news about escrow companies. By getting involved in escrow service trade groups, you can often help shape the news and trends through legislative action committees if you are in touch with the trends the industry is moving toward. Look for escrow and title services news and trends in a variety of places.

1. Register for email alerts and escrow agreement news feeds.

2. Encourage your staff to read publications for escrow services.

3. Join other professionals in escrow and title trade groups.

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Get RSS feeds and title company newsletters

Set up a separate an email account to receive news alerts and escrow service newsletters from a variety of sources, including those that consumers are reading, so that you can judge the economic climate in which you are working.

I recommend: Find valuable trend information at Realty Times. EIN News offers the latest in real estate news, including changes that affect the title and escrow industries. Keep up with the mortgage industry via National Mortgage News or MortgageDaily.com and with title insurance news at Insurance Journal.

Make information gathering an important piece of your escrow agent business

Escrow and title services don't always send out their latest news in press releases, so you have to find the news from a variety of sources. Take time at staff meetings to share recent news developments and ask that important title company information be turned over to you immediately.

I recommend: Look for local association chapters, such as the Ventura County Escrow Association, that will bring you relevant national and regional news issues. The Land Title Association of Colorado is another regional group that keeps members up to date with federal regulations that will make a difference to its members and industry professionals.

Participate in associations for escrow companies

Show up at title company association meetings and conferences so that you can build relationships with other professionals who can share important news and trends with you. Register as an affiliate with other peripheral groups such as mortgage lenders and Realtor organizations with whom you do business to hear about rising trends that will affect your business.

I recommend: The American Escrow Association keeps members updated with the latest news that affects their businesses, including regulatory changes. News from the American Land Title Association will provide you with the information you need each day to make informed business decisions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Keep in touch with your board of directors and let them know about escrow service changes that you foresee. By being proactive, your books will always be in compliance with the latest regs put out by the treasury department, especially when there are political administration changes.

Every real estate professional must search for and select escrow services or a title company to work with at some point in their career. Who you choose to work with is not only important for your business reputation but also for your clients as they perhaps undergo the most important financial transaction of their life.

Although the buyer is not obligated to use the escrow and title services you recommend, you may find that many look to you for advice and recommendations. Be careful not to steer them in the wrong direction.

When looking for an escrow officer or title services, consider asking these questions:

1. Ask the potential escrow agent how long they have been in the business. Also ascertain how transactions are handled. Is there an assistant who does most of the work? How does he or she relay the status of files?

2. What about business after hours? If needed, will a representative from the title company stay late?

3. Get rates in writing. Ask about title and escrow fees including delivery and recording charges as well as rates for money transfers.

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Work with title companies who are trustworthy

Although a 100% guarantee of eliminating all title risk is not possible, a thorough title search and proper title insurance can thwart most claims against a property. A good title search can mean the difference between a solid transaction and one that unravels.

I recommend: Check out the services offered by Professional Settlement Services, based in Macedonia, OH, and Naples, FL, and then order your title work. A Chicago title company, Premier Title, offers customized services.

Choose escrow companies as a neutral third party for the transaction

Nothing's more important in the real estate business than the actual transaction - the exchange of funds. To help distribute the appropriate money and comply with the lender's requirements, an escrow holder must be acquired.

I recommend: Closing, escrow and title services are all offered by Closeline Settlements with offices in several major US cities. Learn more about the services at Sterling Trust Company and request more information if needed.

Utilize escrow and title software

As a real estate professional, the more knowledgeable you are about all aspects of the transaction the better you can serve your clients. There are many options to continue learning including implementing software to give your clients a better understanding of the closing process.

I recommend: Find out more about SoftPro closing and title production services software. Request a 30-day trial to evaluate how it would fit your needs. Read about the features and options available from the First American SMS Streamline system.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure that buyers are aware that the payment each month from the escrow account can increase or decrease depending on taxes or insurance premiums.

Escrow and title services serve many industries, but most importantly they provide the real estate industry with a vital service. An escrow account allows a smooth transition between buyers and sellers of property with a third party managing the deal. Once the sale has been made, the money will be released from escrow to the seller. Title products may also have a waiting period, much like escrow, though not always.

Working for a title company requires some specialized training. Those that want to work for title and escrow services should seek escrow and title services education and training from a variety of resources. These resources include:

1. Classroom training that provides detailed instructions on how to work with an escrow agreement.

2. Self-guided online training that provides the same information in less time.

3. Seminars that provide the latest industry trends and information.

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Participate in classroom training provided by title companies or third parties

Those who want to work with a title and escrow company need to learn a lot of information about real estate loans, insurance and closing procedures. There is no specific prerequisite training for escrow services, but a college degree is helpful.

I recommend: Professional Escrow and Title Services offers online and classroom training for those who want to learn about sale closings, insurance and tax laws related to escrow and property titles. The Business of Escrow provides a handful of classes for escrow professionals that provide certification upon completion of the course.

Take online classes to learn the skills needed to work with escrow companies

Online classes may be a more convenient option for those that want to learn specialized skills to work with escrow and title companies, but may not have the time. You can find many online classes that only take a few days or weeks to complete, many providing certification as well.

I recommend: Escrow Publishing Company provides an online course that teach about escrow services in the state of California, since most states vary in specific laws and procedures. D.W. Moore and Associates provides a comprehensive course for those who are in the pre-licensing stages of becoming and escrow or title officer.

Attend seminars for escrow officer and title agents

Seminars are a great way for those already trained to find continuing education in the title and escrow field. Seminars are also good for those who are still in the pre-licensing stage, because they can help you network with others in your field of expertise.

I recommend: The American Escrow Association holds an annual event where you can network with others in the field and also take part in educational sessions. Statewide Title provides an annual seminar series that focuses on specialized topics, including 1031 tax exchanges and foreclosure issues.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  For those studying to be an escrow agent, there are also other study materials for your licensing exam, including DVDs, CD ROM study guides and textbooks.

Escrow and title services key terms will help both buyers and sellers understand important real estate transactions. Home sales rarely occur without the help of knowledgeable personnel at an escrow and title service. Most home sales involve the transfer of thousands of dollars, and the seller and the buyer are usually strangers. Individuals transferring these large amounts of money or the title to a home could suffer huge loses without a disinterested third party to guard the valuables while they finalize the deals. Personnel at an escrow and title service work as this disinterested third party.

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Escrow

Escrow services are available for the safekeeping of large sums of money or valuable property. The officials at an escrow service safeguard the transfer of the monies or valuables when transferring ownership from one party to another. The escrow service has no interest in the transferred items except to make sure that officials complete the transaction legally, completely and properly.

I recommend: Sterling Trust Company provides escrow services and their website contains clear explanations of important key terms.

Conveyance

Real estate agents and lawyers handle small cottages and large estates for their clients. As they ensure that they handle the large funds properly, they must also make sure that they transfer and record ownership of properties. Conveyance is the term used to describe the transfer of property from one party to another.

I recommend: InvestorWords.com defines terms used in real estate transactions. Read about how real estate is conveyed from the seller to the buyer in every state at Owners.com.

Deed of trust

A deed of trust is an important document that contains the conditions for a mortgage on a home. The mortgage lender keeps the original deed of trust until a customer makes the final payment. A deed of trust is a legal document filed with official land records, usually at the county courthouse.

I recommend: RealEstateLawyers is a useful source of information on escrow and title key terms.

Earnest money

Buyers show their serious intent to buy a property by providing earnest money. The amount of money differs depending on the value of the property, and a buyer might forfeit this amount if they back out of the deal. The buyer usually places the earnest money in an escrow account until the deal is complete.

I recommend: AllBusiness explains important real estate terms in ordinary language.

Impounds

Property taxes and insurance premiums are impounds that are held by an escrow and title service to cover for the lender in case the borrower does not pay these important expenses. The escrow and title service pays these expenses to avoid any confusion and to ensure that the proper agencies receive the payments on time. Borrowers can make arrangements, usually for a fee, to avoid placing these funds in escrow accounts.

I recommend: Escrow Help provides information on key terms for those working with an escrow and title service.

Quit claim

A quitclaim is a transaction that an individual files to give up their interest in a property. Family members are often the people who use a quitclaim to give up their interest in a property to another member of their family. The beneficiary of a quitclaim assumes all of the responsibility for the property including taxes, liens and other encumbrances.

I recommend: US Legal provides a clear description of a quitclaim and other real estate terms.