If you’re involved in a large money transaction, oftentimes you may want to hold your money in escrow – also known as an escrow holdback.
This involves placing a percentage of the money you owe in a deal into an escrow account for safekeeping until the both sides are satisfied that their terms of the deal are fulfilled.
Not sure if putting your money into escrow is the right move for you? There are many benefits associated with holding escrow!
Indeed, if you want to ensure a smooth transaction, an escrow holdback may be the best option for you.
Let’s dive into the top 5 benefits of holding escrow, so the next time you find yourself in a position where you’re exchanging money for goods or services, you’ll be able to weigh the pros and cons of contacting your escrow agent.
1. Ensures a Deal Goes Through
The primary benefit of holding escrow is that by doing so, you are basically ensuring that the deal goes through on your end.
In fact, escrow money in real estate is often called “earnest money” or “good faith money” as a symbol of trust between the buyer and seller.
Putting your money into an escrow holdback implies that you are making a deal with the intention of fully upholding all of the conditions, and the deposit itself shows that you are committed.
2. Can Apply to Various Deals
There are many different instances in which you would hold money in escrow, including:
- Home buying with real estate escrow
- Monthly payments
- Rental homes
- Goods and services
- Private capital
Basically, nearly every large money transaction you get involved in can involve putting money into escrow. Some escrow companies specialize in different types of deals or industries, while others service all kinds of escrow transactions.
New Venture Escrow prides itself on being versatile in that respect. Our goal is to guide you through the closing process and ensure your held funds are being distributed appropriately, no matter the situation.
3. A Secure Process
Security is definitely one of the main concerns for most Americans when it comes to anything digital. In fact, a recent study found that seven-in-ten Americans say they feel their personal information is less secure than it was five years ago.
Putting your money into escrow with an escrow company you can trust ensures a secure process. Some may argue that a con of holding money in escrow is that it leaves you more vulnerable to fraud.
Wire fraud is the most common type of scam people in escrow fall victim to. Essentially, criminals who commit escrow fraud convince homebuyers that their money will be covered and they ask customers to submit money using unusual means.
They use a well-known online payment method service to ease the buyer into a false sense of security so that they can have the money wired to them.
New Venture Escrow understands the risks and concerns of escrow fraud, and we take extra steps to ensure a secure escrow process from start to finish.
To make your client feel safe, we made sure everything about our virtual escrow services were secure from the login to the communications.
Be sure to read the reviews and get to know your escrow company to ensure that you are working with individuals you can trust with your money.
4. Virtual and Easy
Holding money in escrow is done virtually, meaning you transfer the money from your bank account into your escrow company’s account for safekeeping.
This makes the process smooth and easy. You can get the ball rolling on your transaction by simply moving money around and signing papers.
New Venture Escrow takes this one step further, allowing you to sign documents virtually and track progress of your real estate escrow with our VentureTrac 4.0 app.
Login to the communications via an encrypted program and gain access to direct communication with your escrow agents as well as any documents you may need.
VentureTrac 4.0 wields cutting-edge technology to make the escrow process faster and more convenient than ever before.
5. Escrow Agents You Can Trust
The biggest benefit of holding money in escrow is having agents on your side that you can trust and go to with any questions or concerns throughout the process.
New Venture Escrow prides itself on being experts on everything escrow. Our experienced escrow agents aim to guide you every step of the way.
Whether you’re holding escrow for services or goods, or closing on a house via real estate escrow, we’re ready to help you close on your next deal. Contact us today to get started.
Now more than ever, e-commerce has dominated the way we shop. The pandemic shifted us all to relying more on our digital devices to get