How does the escrow process work?
The escrow is a depository for all monies, instructions, and documents necessary for the purchase of your home. These include your funds for down payment, your lender’s funds, and documents for the new loan. Generally, the Buyer deposits a down payment with the Escrow Holder, and the Seller deposits the deed and any other necessary papers with the Escrow Holder. Prior to close of escrow, the Buyer deposits the funds required and agreed upon by the parties to the sale with the Escrow Holder. The buyer instructs the Escrow Holder to deliver monies to the Seller when the Escrow Holder: • Records the deed. • Delivers to the Buyer a policy of title insurance which shows title to the property vested in the name of the Buyer. The Escrow Holder is authorized to deliver the deed to the buyer when the Buyer has deposited the agreed-upon purchase price and fulfilled any other conditions specified in the escrow instructions. The Escrow Holder handles the prorations and adjustments on any fire/haza
The process is fairly similar across the various service providers. For example, at SEDO or Moniker, you would start by submitting payment to the escrow company. Once they have secured your funds, the domain owner would transfer the domain name to the escrow company. At that point, the escrow company will simultaneously release your funds to the seller, and transfer the domain name to you. At Escrow.com, the company does not take possession of the domain name. Instead, after the escrow company secures your payment, the domain owner transfers the domain directly to you, the buyer. Once you verify that the domain name is under your control, you notify Escrow.com, and they will release the funds to the seller. Escrow companies ensure that the transaction happens safely and securely. Domain owners usually have a preferred escrow provider that they will use to handle the sales of their domain names.
