They are a key tool for securing real estate transactions and protecting both parties involved in Tennessee.
In Tennessee, escrow accounts are a special account typically opened through a title company or the attorney handling the transaction. They are used to receive the initial deposit, also known as a “good faith deposit,” paid at the beginning of the closing process of a real estate transaction. This deposit acts as a guarantee that both parties will comply with the terms of the contract.
This account acts as a neutral third party, handling and holding the funds until all the conditions established in the real estate contract are met. Once the conditions are met, the escrow deposit is released and used to close the transaction. If either party fails to comply with the terms of the contract, the funds may be withheld and, in some cases, returned.
Escrow accounts offer the peace of mind of knowing that funds are kept secure until all agreed-upon conditions are met. This is especially useful in Tennessee real estate transactions involving significant amounts of money and large investments.
In short, escrow accounts are an important tool to protect both parties in a Tennessee real estate transaction and ensure that all contract conditions are properly met. If you have further questions on this topic, please contact us for more information.
Keep your real estate transactions safe and secure with an escrow account in Tennessee!
