ESCROW SERVICES

An escrow service is a type of account that is created by a broker in charge of holding funds till the termination of the entire transaction, on behalf of his client or principal, which falls under the licensed law provisions. In other words, an escrow service is like a trust account which a borrower holds in his name in order to pay property taxes and other such obligations.

Escrow services generally play the role of middlemen in transactions involving payment for goods bought. The service will make sure that the buyer is satisfied with the service or product that they have bought, and also that the seller receives payment for the service sold. Such services offer both the customer and the merchant a secure and trusted environment to conduct the transaction. They come in especially handy in cases of auction type of websites and also high ticket items.

The procedure adopted by Escrow services can be detailed as follows:-

• The first step involves the buyer making the necessary payment to the escrow services, for the order that he has placed. This may be done via money order, checks, credit cards, direct deposits or also wire transfers. The type of payment made here depends upon the type of buyer, be it a business, a personal buyer, or a certified authority.
• As soon as the payment made by the buyer reaches the escrow service, they will send out a notification to the seller that it is ok to ship the goods out to the buyer’s location. 
• Next, the buyer will receive the goods; check them to verify their condition and any other specifications the buyer may have asked for. Once they are happy with the product, they send a notification to the escrow service that they have received the merchandise and they are happy with it.
• Once the escrow service receives this alls good sign, they release the payment to the seller, either by sending across a check to the seller or making a wire transfer straight into the sellers bank account.

After this process is done, there will not be any further hassles as both parties involved, the buyer & the seller, have confirmed their satisfaction. However, in cases where the buyer does not give an all clear sign that they are satisfied with the product offered, the escrow service will be notified that the goods are being sent back to the seller, who in turn notifies the seller about this. Once the goods reach back to the seller, a one week time period is provided to them. Within such time, they have to conduct an inspection to check if the goods that have been returned are in the same condition as when they were sent out. Once the seller is satisfied of this, he will notify the escrow service, who in turn releases the payment made by the buyer, back to them. However, the services will also keep a part of the amount back with them, as a service fee for the guarantee they offered to the buyer. Plus, they also take in an amount from the sellers side as well.

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