Real estate scams can be devastating, with the potential to result in substantial financial losses. That’s why it’s crucial to take the necessary steps to protect yourself when buying or selling a property. One of the most effective ways to do this is by utilizing an escrow service. In this blog post, we’ll discuss how escrow protects you from real estate scams and the precautions you can take to ensure a secure and safe transaction.
Real estate scams
The Role of Escrow in Preventing Scams One of the significant advantages of using an escrow service is that it functions as a safeguard against scams. By enlisting an escrow agent, you can rest assured that your funds and important documents will be held securely until all conditions of the sale are met. This helps prevent fraudulent activities, such as identity theft or wire transfer fraud.
For example, let’s say you are selling your home and have agreed on a purchase price with the buyer. The buyer sends you a cashier’s check for the full amount, and you deposit it into your bank account. But, a few days later, your bank contacts you, stating that the check was counterfeit. You’re now out of the full purchase price, and the buyer is no If you had utilized an escrow service, the funds would have been held securely until the buyer’s check cleared, and the escrow agent confirmed the transaction’s legitimacy. This would have prevented you from being scammed, as the escrow agent wouldn’t have released the funds until they were certain that everything was legitimate.
Tips for a Secure and Safe Transaction
Using an escrow service is an excellent way to protect yourself from scams. Here are just a few ways they guarantee a safe transaction:
- Researches the Parties Involved
Before committing to a real estate transaction, a reputable escrow office such as Eastland Escrows conducts research on the buyer, seller, and any agents or brokers involved. We work with only those companies with reputable licenses, and other information to help verify their credibility.
- Verifies Documents
Before signing any documents, such as contracts, titles, or deeds, make sure they’re legitimate and accurate. Your escrow agency will manage this for you, so you can rest assured everything is above board.
- Keeps Communication Lines Open
Stay in touch with all parties involved in the transaction and be cautious of any changes or unexpected requests. Your escrow office will manage communication for you, so you won’t be left holding the bag.
In summary, utilizing an escrow service is one of the most effective ways to protect yourself from real estate scams. By using a reputable escrow agent, verifying all documents, and staying vigilant, you can ensure a safe and secure transaction.
ABOUT EASTLAND ESCROWS IN COVINA, CALIFORNIA
If you’re a real estate agent or broker representing buyers and sellers. Or, if you are considering buying or selling a home, please consider calling Eastland Escrows, Inc. to manage the escrow account. We are an independent escrow company based in Covina, CA serving Southern California since 1973. With more than 100 years of combined experience, we pride ourselves in working like a dog on behalf of all our clients! We have closed thousands of escrow transactions from real estate sales and refinances to business sales and mobile homes.