Title & Escrow- What is the difference between Title and Escrow?

Title and escrow are essential but distinct parts of the home buying process. The title refers to insurance that protects you from unforeseen claims against the property, such as a prior owner's unpaid debts. It ensures that the title of your home is clear and free of liens or judgments. Escrow is a neutral third party that manages the transfer of ownership and funds, ensuring that both buyer and seller fulfill their obligations. Escrow holds the money and documents until all conditions are met, facilitating a smooth transaction.

Key Takeaways:

• Title: Insurance that protects against claims or liens on the property.
• Escrow: Neutral third party that manages the exchange of money and ownership.
• Both title and escrow are crucial for a secure and smooth home buying process.

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