When purchasing real property, one of the most sensitive issues for both buyer and seller is how and under what conditions the funds and various legal documents will be safely transferred. In an international transaction these issues are often complicated by the fact that the purchaser and seller may not be familiar or comfortable having funds deposited in an unfamiliar jurisdiction or with an unfamiliar attorney or bank. Title insurance companies have a long history in the United States of playing the role of the neutral escrow agent.
What are escrow services?
Escrow services begin when an Escrow Agreement is executed by all parties (buyer, seller, builder, lender, etc.), including the escrow agent. An Escrow Agreement defines the obligations of all the parties to a transaction and the conditions that must exist before the deposited funds or items may be distributed. The escrow agreement also stipulates how, to whom, and for what amounts the deposited funds/items will be distributed. The escrow agreement cannot be changed unless all parties agree to the changes in writing. The delivery in escrow is without reservation of power to recall, so an escrow agent must act according to the escrow conditions and disbursement instructions contained in the agreement.
LandAmerica - Commonwealth Title of Central America's escrow services provide security to all parties to the transaction: |
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The seller retains a property interest to assure payment/performance by the buyer,
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The buyer obtains security that the property will be his/hers if the conditions in the escrow agreement are met.
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The lender’s funds are not disbursed without assurance that the mortgage is properly filed in the registry; and
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The builder is assured that funds are available to him upon completion of the specified phase of construction.
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Because each party agrees to the escrow terms at the beginning of the transaction, everyone understands how the transaction will occur, when funds will be distributed, and to whom. |
Where are the Escrow Funds deposited?
We have the ability to hold and/or distribute funds and documents "in country" or in the United States. Our escrow services can provide essential tools for both U.S. and Central American lenders as well as for buyers and developers. American investors may feel more comfortable if the funds are deposited in a U.S. Escrow Account. This comfort comes from knowing the reputation and reliability of the escrow agent and using a banking system that is familiar to the parties involved. |
