What is an escrow service?
An escrow service acts as a third party that holds money or property for two parties until specified conditions have been met. When you use an escrow service, such as escrow.com, it works like this: • Either the buyer or seller starts a transaction with the escrow company. • The buyer pays the escrow company for the value of the purchase. • The seller ships the product to the buyer. • The buyer approves the goods. • The escrow company pays the seller. • The escrow company charges a small percentage of the total sale to either the buyer or seller.
Escrow Service providers act as objective and independent third parties in transactions to protect the rights and interests of buyers and sellers involved in a sale. They facilitate the movement of property from the seller to the buyer; and the movement of consideration from the buyer to the seller. Escrow providers look after all of the intricacies and legalities involved in a sale. Use of this service minimizes the risk of the parties involved in a transaction and provides them with an added sense of security in knowing that the transfer of property and money will be handled professionally.
