The process of holding the buyer’s funds in a third-party account.
Also escrow describes the action of verifying the seller’s ownership and ability to transfer their timeshare. A closing company can be employed to hold escrow for two parties, but many timeshare brokers work with a preferred closing company.
We always recommend using a Licensed, Bonded, and Insured closing company to perform escrow services for you. This gives both the buyer and seller peace of mind during the transfer process.
Escrow is most likely the most important part of a closing company’s role. They will hold the buyer’s initial deposit, until the seller’s account has been verified, then collect the final payment and hold the full sum in an escrow account for the term of the transfer. This ensures the seller doesn’t take off with the buyer’s funds, and makes a buyer much more comfortable when submitting their payment.
Also, having a title search performed can help ensure the ownership is what you expected to purchase. Does the ownership have a loan? Did the owner make a mistake on the view that they have? How many points are left for the current year? These and many more questions can be answered by a title search.