Who Can Provide Escrow/Settlement/Closing Services?
The kind of company that can manage this process – called escrow closings in some Western states and real estate settlements or real estate closings in the rest of the U.S. – is dictated by state law and can vary a great deal from state to state. It can be title insurance companies, underwritten title companies, independent escrow companies, real estate brokers, attorneys and financial institutions. In most states, title insurance and underwritten title companies are a good choice since they have no financial stake in the real estate transaction itself and can act as a “disinterested third party.” Since these firms usually order the title search and make sure all encumbrances to the title are resolved prior to closing, they are an economical choice for also managing the entire closing process.
