Info about Escrow
What is escrow
Escrow is a method used when 2 persons want to make a transaction and they use a third person, a neutral person. This procedure works quite easy: the buyer will give the funds to the escrow untill all the formalities will be completed and the wscrow would have the permision to give the money to the seller. This is a very good method because by using a neutral party the 2 sides, the seller and the buyer are both safe. Cases like when the seller have changed all the paper work t the name of the buyer but the buyer doesn’t want any more to give the seller the money (so the seller remains wihout the property and without money) can’t happen any more, using this procedure. The 2 persons will be safe, because the escrow will have the money in his posesion untill the paper work is done. Then the 2 parts will show the paper work to the escrow and the buyer will give his accept to the scrow to transfer the money to the seller. The escrow have an more important role if we are talking about properties that value very much. The escrow is the seller or buyer inssurance that he won’t loose his money or property if something goes wrong.
In many countries the are persons that are escrow agents as their profesion. But in other counties like Canada for example, the attorneys are the one that play the role of the thirs person, called the escrow.
But we are now living in the internet era, and many people search with the internet all kind of goods or services they need. Of course it could even happen to fint the desired good in another country or even another continent. That’s why now online escrow was developed too. It has the same role between the 2 parties, but they don’t have to actually met, thay discuss and make the transactions via internat. The only problem is that some sites or companies were created and they aren’t real escrow, so if you want to call the help of an escrow because you are afraid that the buyer will fool you, but in fact the escrow is the one that comits the fraud.
Because now even non tangible goods are sold and buyed, the software escrow was created also. But is important that the escrow holder is chosen by both the parties, and they agree about this procedure.