Real Estate Transactions
Real estate transactions are often complex and involve significant sums of money, making them vulnerable to fraud and other risks. Real estate escrow provides a secure way for both buyers and sellers to complete a transaction with confidence and peace of mind.
How it works
Agreement on Terms
The buyer and seller agree on the terms of the sale and select Crow Pledge X as their escrow agent. Crow Pledge X opens an escrow account to hold the funds and documents related to the transaction. Both parties deposit the necessary funds into the account, and the escrow period begins.
Earnest Money Deposit
The buyer makes an earnest money deposit, which is typically a percentage of the sale price that demonstrates their commitment to the transaction. The earnest money is deposited into the escrow account with Crow Pledge X. The escrow agent verifies the deposit and ensures that it is applied towards the sale price.
Due Diligence
The buyer has a certain period of time to conduct due diligence on the property, which may include inspections, appraisals, and other research. During this time, the seller is usually not allowed to accept other offers. If the buyer discovers any issues during due diligence, they may negotiate with the seller to resolve them. If any contingencies are included in the sale, such as the sale of the buyer's current property or the successful resolution of any legal issues related to the property, the escrow agent ensures that they are met before releasing the funds.
Closing
Once all the terms of the agreement are met, the transaction moves to the closing phase. Crow Pledge X verifies that all the necessary legal documents are signed and recorded, such as the deed, the bill of sale, and any other documents required by the state or local government. Once all documents are signed and all conditions are met, the funds are released from the escrow account to the seller, and the transaction is complete.
"This type of services provide a level of protection for both parties in a real estate transaction. The buyer can be confident that their funds will not be released until all of the agreed-upon terms have been met, and the seller can be sure that they will receive their payment once those terms have been fulfilled. This services are a critical part of ensuring a smooth and secure real estate transaction."
- David Reiss, a professor of law and real estate expert at the Brooklyn Law School
