Title&Escrow questions! Need Feedback

[Kris Eubanks]

It doesn't seem like many people talk about it as far as wholesale but I know it plays a significant part. What about Title & Escrow do I need to know? Should I reach out to a company directly? Open to any and all feedback!

[David M.]

@Kris Eubanks

Probably a good idea to run a prelim Title search.  Customarily for me on a regular transaction, its the buyer's responsibility to check for clean Title, hence the Title search.  But, the seller's responsibility to deliver clean Title.  But, a "higher quality" wholesaler could check ahead of time to help with having a smooth transaction.

"Escrow" is nothing more than a legal construct where "stuff" is put into a "pot" with specific instructions.  Think of how do you do prisoner exchange (for the sake of demonstration).  Who goes first?  With escrow, the deed and the funds are "thrown" into the "pot" (as I call the escrow account).  The deed won't be released by the agent unless the conditions are met --- having sufficient funds to close being probably the most important one of them.  The funds won't be released until the deed is signed and available.  In this manner, both parties can be sure that one won't run away without leaving beind what is due.

Same idea of escrowing the taxes and insurance.  Funds are put into the account with the instructions that they are to be used for paying the taxes and insurance...  Same for the Earnest Money Deposit...

There isn't anythign really "magical" about escrow.  I hope that helps.  Good luck.