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.
Work with title companies who are trustworthyAlthough 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.
Choose escrow companies as a neutral third party for the transactionNothing'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.
Utilize escrow and title softwareAs 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.
- 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.