At Commercial Partners, we offer a number of different services that will assist you in the acquisition of your newest commercial venture, including acting as an escrow company. Escrow services are a wonderful option for both the buyer and the seller, but they tend to offer much more to the buyer in the form of protection and assurance. In today’s blog, we take a closer look at our escrow services department and how working with an escrow company can help settle disputes that might come up during your commercial purchase.
To put it simply, an escrow company acts as a neutral middleman to assist with the process of a sale. If you were making a very large commercial purchase, it would be a little unnerving to provide earnest money or the funds needed to complete a sale directly to the seller. After all, whose to say they’ll follow through with their obligations or do what needs to be done to facilitate a fast sale once they have your money? That’s what an escrow company works to protect against.
Essentially, the escrow company acts as a third party that ensures both parties uphold their duties throughout the process of a sale. The buyer will provide the funds for the escrow company to hold, which gives the seller the peace of mind knowing that the buyer actually has at least a portion of the funds they claim to have, and it helps the buyer know that the seller isn’t just going to run off with their money because it’s being held by an impartial middleman.
While the smooth transfer of funds is the main reason why many commercial investors lean on a title company with escrow services to complete their purchase, it’s certainly not the only reason. Another main benefit of choosing an escrow company to assist with your acquisition is for dispute resolution and compliance.