Escrow Services: Every Thing You to Need to Know About







“Escrow” is a word that causes misunderstanding for many individuals. The definition of the word is often mystified by the fact that it has various meanings, insinuations and purposes. Individuals often struggle to understand escrow service and gaining a fuller sense of its meaning. It is important to understand that once you become aware of the concept of Escrow and the services, it will help you to move forward with the transaction without any risk.













According to the Merriam-Webster dictionary, the word escrow means “a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition” or a “fund or deposit designed to serve as an escrow.”





When two parties are involved in the money dealing matters there might doubt of trusting the parties. This is a very common situation in the financial domain where two parties are involved in the money dealing matters. Here, the only third-party offers the solution by providing assurance to both the parties for transparent money transaction.





Understanding the concept and learning about Escrow services become even more important when you are involved in cryptocurrency deal, an online sale or a real estate transaction. By understanding ‘escrow services’ you also get to comprehend Bit coin or crypto currencies escrow services as well.













What is an Escrow Service?





Escrow is referred to as a structure or a financial arrangement where there is a third party involved apart from two parties, one buyer and another seller. The Escrow provider is neutral and doesn’t care much about the competition between the buyer and the seller. In a safer and more comfortable environment” An Escrow Service Provider” aids in the transaction between the seller and the buyer. This is most significant in deals like those of cryptocurrencies which require a lot of faith, for which escrow is optimum option.The job of an Escrow service provider is to make sure that the parties abide by their terms of the bargain and there is no sort of any fraudulent. It assures that both the parties (buyers and sellers) cater to their responsibilities in the best possible manner.













When Can a Transaction Get Complicated?

Generally, when you plan to buy or sell anything, you give consent to do a number of things to execute the deal successfully. Being a buyer you need to make a payment upon the agreed price within a stipulated time frame. Similarly, as a seller, you have to hand over the asset to the buyer within the time as agreed upon. You might not have the idea, but the majority of the transactions that take place between the buyers and sellers are quite complicated.





Some things that might arise and make the whole transaction process really complex are like:

Ø If you are a seller, you might need an assurance from the other party (buyer) that he/she has the potential to make the payment right on the agreed time frame whereas a buyer, you might want to assess the entire property before investing the money.









Ø There is a chance that the item that is up for sale is a service, not a product.





Here comes a question in mind that who will keep an eye on complex agreements and judge on such complex cases. This is the exact situation, where an Escrow service provider can be the best option, as it assures that both the parties act as per the agreed upon agreement. Basically, this service provider act more as a middleman and safeguard the assets involved in the transaction process. It becomes even more important to seek the services of a trustworthy and reliable Escrow provider while dealing with an online transaction.

























How Does The Escrow Service Works?

An Escrow provider acts as a reliable and trusted third party reducing the instances and the risks associated with frauds and scams. The Escrow provider will collect, hold and distribute money only both the buyers and sellers are contented and happy. Let’s explore step by step that how does the Escrow works?





The parties, a buyer and a seller will start with the transaction. They agree to the terms and conditions set and thereby register to the Escrow services. The buyer will pay the Escrow service provider via an approved payment method. The Escrow service provider will verify the payment. After then, the seller is given a notification that the transferred payment has been verified and secured by Escrow. Once the payment is verified, the seller ships the merchandise and also includes tracking information so that the buyer can monitor the shipment. The Escrow provider verifies that the buyer has received the shipment. The buyer gets the option to evaluate the merchandise with a fixed number of days to accept or reject it. The Escrow service provider will pay the funds to the seller after the buyer accepts the merchandise. This completes the whole transaction process in a safe and secure way.





Keep Parties Updated With All Steps of the Transaction







After you have created an account with an Escrow service provider, it will keep you updated on the transaction process. Furthermore, it also keeps you informed if there are any actions that you need to take. No matters, you are a buyer or a seller, it ensures that you will have full access to the step by step implementation with a proper timeline as well as you know exactly what next you need to do with the transaction.













Keeps a Track over the Transaction





In case of a seller, you might want to explore a wide array of potential buyers and the situation is visa- versa for buyers too. The question arises that how it is possible? Especially, when you for making the safe and secure online transaction? It is absolutely not possible for the luxury items and even practical to ask the buyers to sign a safe form of payment. In fact, there are several online scammers who take the undue advantage of the sellers.





Here, Escrow service provider acts as a third-party referee that keeps a watch over the transaction process completely. Both the buyers and the seller can really benefit from this service as there is an agreement on several terms and conditions. Some of the common terms that an escrow services provider tracks include:







