Title insurance companies' are an impartial third party which offer escrow services on transactions for which they are issuing title insurance and do not represent the buyer or the seller.
A title insurance policy protects against title defects, liens and encumbrances existing as of the date of the policy and not excepted from coverage. For a one-time premium, the policy remains in effect until the property is sold or refinanced.
Some of the tasks an escrow agent may perform are as follows:
- Order payoff information on existing liens;
- Calculate and prorate taxes, liens, interest, rents and insurance policies;
- Arrange for title insurance protection for the buyer and lender;
- Pay costs and liens as agreed upon by the parties to the transaction;
- Close the transaction after all instructions from buyer and seller have been satisfied;
- Prepare a closing statement for the parties to the transaction, showing disposition of funds in the transaction; and
- Arrange for recording of the conveyancing documents and any other legal instruments necessary to transfer title to the property pursuant to the purchase agreement.
