The Role of Escrow in a Real Estate Transaction

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the conditions are met in the purchase agreement. In order to ensure that both parties are protected during a transaction, typically an escrow fund is agreed upon to be held as collateral. This not only offers a safety net for the seller as a show of good faith from the buyer, but it also protects the buyer's interest in the purchase of the property as well. Now, we understand that not everyone understands the need for escrow services. So, this week, we'll be giving an in depth look at what escrow is and why it's an important part of the home buying process.

What is Escrow?
An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company. Escrows are very useful in the case of a transaction where a large amount money is involved and a certain number of obligations need to be fulfilled before a payment is released.

Escrow Accounts
When you place funds in escrow with Arrowhead Title, your funds are held in a secured, non interest bearing trust Escrow Account until the transaction is completed. This ensures that your transaction is protected. During a real estate transaction, the escrow officer holds all the important documents and deposits while the buyer and seller work out the details. We make sure the closing goes smoothly and everyone gets paid what they’re owed. After the closing, we record the deed and title transfer that make the home officially yours.

Our Residential Real Estate Escrow Services include:
  • Assuming impartial fiduciary responsibility for documents and funds related to the real estate transaction, as directed by the buyer and seller.
  • Preparing escrow instructions and all documents related to the terms of the sale.
  • Ordering title and tax searches
  • Reviewing of all documents received in escrow and reviewing the lender’s conditions related to title and hazard insurance.
  • Presenting all documents to the buyer and seller for approval and requesting the balance of the buyers funds for purchase of the property.
  • Reviewing the proceeds from the lender and determining when the transaction will be ready to close.
  • Recording the deed, deed of trust and other documents required to complete the sale.
  • Preparing final settlement statement, disbursing proceeds and paying off any existing obligations.
  • Closing escrow and delivery of any statements, funds and documents to appropriate parties.

Whether you’re a buyer or a seller, one of the most important considerations is whether – and under which conditions – the transaction funds will be safely held and distributed by an independent party. In an international transaction, this issue is even more important and, often, more complicated, as the purchaser or the seller may not be familiar or comfortable having funds deposited in an unfamiliar jurisdiction.

At Arrowhead Title, we understand this concern, which is why we offer escrow services that provide cost-effective security to all parties in the real estate transaction. We provide all services necessary to conduct your closing. We will coordinate with the realtor, lender, buyer and seller, builder, homeowner association, etc. to make sure that your closing statement is an accurate reflection of the sale. We also provide standard documents necessary for closing such as the Warranty Deed, Bill of Sale, and affidavits. Let us put our customized services and leading technology to work for you for your next real estate transaction. Contact us today to discuss escrow services at the Lake of the Ozarks!


  1. This is a great post. I like this topic.This site has lots of advantage.I found many interesting things from this site. It helps me in many ways.Thanks for posting this again.escrow agent

  2. Hey
    Escrow account – is an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party (usually a bank) receives and disburses money or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfilment of contractually-agreed conditions by the transacting parties.


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