Do I Have to Use an Escrow Company to Buy a House?

December 17, 2019

Buying a house can be an exhilarating experience. It can also be the cause of a lot of headaches, and before the process is done, you may ask yourself why you ever thought buying a house was a good idea in the first place. There is a lot that goes on when you are purchasing a new home. There are tons of details that need to be addressed, tons of tasks that need to be accomplished in a timely fashion, and a whole lot of paperwork that needs to be signed. There's negotiations and offers that need to be coordinated. Trying to keep track of everything is a difficult proposition. That's why escrow companies are so beneficial to someone who is purchasing a home, but do you really need an escrow company to buy a house?

The short answer is no. You do not legally need to use an escrow company or even have an escrow account to buy a house. That doesn't mean you shouldn't. Buying a home is almost never as simple as the seller writing a check and giving it to the buyer, who then turns over the deed. The cases where this happens is rare. There are almost always going to be others involved in the process, such as mortgage lenders, real estate agents, etc. Buying a home requires satisfying the needs of many people, not just the buyer and seller. Using an escrow company protects buyers, sellers, and lenders from making a bad deal and losing money. Nobody wants to lose money, and not having an escrow company to help you through the process can be risky.

Advantages of an Escrow CompanySecurity is one of the biggest advantages of using an escrow company. As mentioned above, the job of the escrow company is to protect all parties. Almost nobody would consider buying a home without using a neutral third party, typically called the escrow holder. There's just too much risk involved. With an escrow company, and escrow officer will hold all of the documents and money associated with the sale of the house in an escrow account. They will also make sure that everything is properly filed and recorded. The escrow company will see that all obligations have been met by the buyer and seller before any money or documents change hands. Buyer and seller don't need to trust one another when everything is handled by an escrow company, and the risk of any kind of fraud is almost non-existent. Your personal information, needed for real estate transactions, is kept secure as well, including bank account numbers, social security numbers, and credit and loan account numbers. Safety alone is worth the cost of using an escrow company to handle your real estate closings.

Many escrow companies handle other duties associated with real estate closings, including title searches and title insurance. Both of these are highly important. A title search helps ensure the title to the home is legally transferable. Title insurance is needed to protect against losses in case something is found to be faulty with the title in the future. Buyer's don't legally need to purchase buyer's insurance, but if they are using a bank or other traditional lender, they will be required to purchase lender's insurance. Many escrow companies can help with this. You could attempt a title search on your own, but do you want to risk missing something that could make the sale of the home void? It's best to trust this task to an escrow company that includes a title search in the service.

Not all escrow companies offer all of the services associated with real estate closings. If you're going to use an escrow company, you want to use one that has been in business for a while and that offers both title and escrow services all in one place. Key Title & Escrow is just such a company. Key Title & Escrow is a Florida title and escrow company that has been serving the real estate industry for over 21 years, developing a reputation for quality and efficient closings. We pride ourselves in using our experience and real estate connections to bring our customers the best possible closing anywhere. We also pride ourselves in customer service that exceeds all expectations.


Key Title & Escrow is a full-service title and escrow company. We offer a wide range of real estate closing services that include property title searches, escrow services, record owner searches, Florida property searches, residential title services, Florida title insurance, and other home purchase transactions. We are committed to providing such a range of Miami real estate closing services because we want to serve your closing needs as fully as possible. Whether you are a first-time home buyer or purchasing another home, we want to be your first choice for all of your real estate closings. The convenience of being able to meet all of your needs with one company can give you peace of mind in knowing that you will have a smooth closing and be enjoying your new home as quickly as possible. We even offer after-hours and weekend closings for your convenience.

When you are ready to buy a new home, choose Key Title & Escrow as your partner in the closing process. Don't let the stress of all the little details make your experience a headache. We can make handle the details while you enjoy your new home. Give us a call at locally at (305) 235-4571 or toll free at (800) 547-0006. You can also fill out the form here on our website to schedule your closing. We look forward to serving you.


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