Escrow and Title Matters

Posted on: February 27, 2014

Most real estate sales involve a third party escrow company and title insurance.  Escrow instructions should ‘mirror’ the final sales agreement, plus language governing the escrow company’s procedures.  Title insurance is almost always obtained to insure the buyer’s ownership rights and the lender’s position in the chain of title. Some transactions undergo a change of terms before the escrow closes that requires a release of buyer’s funds to the seller or other material changes in the legal position of the parties.  In that event, a real estate attorney should review any proposed material changes to the escrow prior to release of funds or other change of legal position.  In addition, some escrows are prevented from closing because the title company has found some item of record or pending action in court that ‘clouds’ the title to where the title insurance company will not issue a policy until the matter is corrected.  Such problems can usually be resolved with the help of a real estate attorney.

Posted in: Real Property - Transactional • • •