Escrow Services

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 the buyer, seller and the escrow agent. An Escrow Agreement is a written instrument which 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 which 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, which means that an escrow agent must act according to the agreed-upon escrow conditions and disbursement instructions.

LandAmerica Lawyers Title of Central America’s escrow services provide security to both parties to the transaction: the seller retains a property interest to assure payment/performance by the buyer and the buyer obtains security that the property will be his/hers if the conditions in the escrow agreement are met. Because both buyer and seller agree to the escrow terms before the transaction, each party understands how the transaction will occur, and when funds will be distributed and to whom.

Our escrow services can provide essential tools for both US and Central America lenders as well. We have the ability to hold and/or distribute funds and documents “in country” or in the United States for American lenders who will be making loans to buyers and developers in Central America. Additionally, American buyers utilizing the services of Central American lenders may feel more comfortable holding their money with an North American Escrow Agent and we can provide this valuable service to Central American lenders.