Very simply defined, an escrow is a deposit of funds by one party for the delivery to another party upon completion of a particular condition or event. Most commonly used in property transactions.Escrow is also used in the transferring of documents from one party to another party upon completion of a particular condition or event.

Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds, property or documents will change hands until ALL of the instructions in the transaction have been followed.

The escrow holder has the obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.

The principals to the escrow: buyer, seller, lender, borrower: provide escrow instructions, most usually in writing, to be created, signed and delivered to the escrow officer. If an Attorney or broker is involved, they will normally provide the escrow officer with the information necessary for the preparation of your escrow instructions and documents.

The escrow officer will process the escrow, in accordance with the escrow instructions, and when all conditions required in the escrow can be met or achieved, the escrow will be "closed." Each escrow, although following a similar pattern, will be different in some respects, as it deals with your property and the transaction at hand.

The duties of an escrow holder include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with the instruction; paying all bills as authorized; responding to authorized requests from the principals; closing the escrow only when all terms funds in accordance with instructions have been completed, and provide an accounting for the Closing or Settlement Statement.

The selection of escrow is normally done by agreement between the principals, the buyer and seller and or lender and borrower.

The key to any transaction as important as your sale, purchase or loan is to read and understand your escrow instructions. If you do not understand them, you should ask your escrow officer to explain the instructions.

Your escrow officer is not an attorney and cannot practice law; you should consult your lawyer for legal advice. Do not expect your escrow officer to advise you as to whether or not you have a "good deal" or are doing things the right way. The escrow officer is there to follow the instructions given by the principals in the escrow.

In order to expedite the closing of the escrow, you should check with your escrow officer as to what specific items you could do to assist. Ask the question: "What can I do to expedite the closing of this escrow?"

Respond quickly to correspondence. This will assist in the timely closing of the transaction.

If you are required to deliver funds into the escrow, make sure that you provide "good" funds in the form required by the escrow officer (most commonly a bank transfer) you will be given an escrow account number for your transaction by Ecuador Escrow.

When the escrow officer closes the escrow, you may want the closing papers, title, registry certificate, accounting statement etc. made available immediately. There are many aspects to the closing of the escrow, and some of these cannot be processed on the day of the closing; they may take several days.

A closing statement is an accounting, in writing, prepared at the close of escrow which sets forth the charges and credits of your account. The items shown on the statement will reflect the purchase price, the funds deposited or credited to your account, payoffs on existing encumbrances and/or liens, the costs for all services and a determination of the funds you are entitled to at the close of the escrow. When you receive your closing papers, review the closing statement; it is extremely logical and reflects the financial aspects of your transaction. If anything does not make sense to you, you should ask your escrow officer for an explanation.

Escrow holders destroy the Escrow files after five years. So make and save copies of your Escrow file.

Escrow fees are like any other business. Ecuador Escrow will charge fees that are commensurate with the costs of producing the service. Ecuador Escrow charges $200.00 per transaction. On occasions, an additional fee will be charged for unusual expenditures on a given transaction.

The time of each Escrow is dependent on each transaction. An Escrow account is opened for a mínimum of 45 days. In some instances special instructions may require an extended escrow. If a scheduled 45 day Escrow is extended by the buyer or seller or the escrow instructions are not met within the escrow account time period. Then the escrow account is automatically extended for a mínimum of 30 additional days.

No escrow is opened with the intention that it will cancel, but there are occasions when a contingency cannot be met or when the parties disagree during the pendency of the escrow.

Ordinarily, an escrow holder will take the positions that no funds on deposit can be refunded until the escrow holder is in receipt of mutual cancellation instructions signed by the principals. The escrow holder cannot normally make a determination as to who is the "rightful" party in a dispute on a cancellation and therefore will not return the funds or documents until the principals agree; the escrow holder is not a judge.

Do expect to be charged a cancellation fee. Ecuador Escrow charges .10% to .50% of the transaction amount as a cancellation fee. The amount depends on the amount of the transaction and the amount of work performed on the transaction. The reimbursement of the funds are made at the end of the escrow period and upon the mutual agreement by both parties.

Sometimes, when a dispute exists, the escrow holder may be forced to allow a court to decide which party is entitled to what documents or funds. The dispute costs incurred by the parties are normally paid out of the funds on deposit in the escrow.