When there is a transaction between you and another party, you might have doubts trusting the party for the deal. This is a very common situation in the financial domain where two parties are involved in the money dealing matters. Once you become aware of the concept of Escrow and the services, it will help you understand such a situation and move forward with the transaction without any risk. Understanding the concept and learning about Escrow services become even more important when you are involved in an online sale or a real estate transaction. Once understanding �escrow services� we get to understand Bitcin or crypto currencies escrow services as well.
       

What do you know about the Escrow services?

Escrow is referred as a financial arrangement or a structure where there is a third party involved apart from two parties, one buyer and another seller. The third party aids in the transaction between the seller and the buyer in a safer and more comfortable environment. It assures that the both the parties (buyers and sellers) cater to their responsibilities in the best possible manner.

The third party or the Escrow provider is neutral and doesn�t care much about the competition between the buyer and the seller. As a third party, the job of an Escrow service provider is to make sure that the parties abide by their terms of bargain and there is no sort of any fraudulent.

Transactions between a buyer and a seller can be complicated

When you plan to buy or sell anything, you give consent to do a number of things to execute the deal successfully. In case, you are the buyer, you need to make a payment upon the agreed price within a stipulated time frame. Similarly, as a seller, you have to hand over the asset to the buyer within the time as agreed upon. You might not have the idea, but the majority of the transactions that take place between the buyers and sellers are quite complicated.

When can a transcation get complicated?

There are three things that might arise and make the whole transaction process really complex.

1.   As a buyer, you might want to inspect and evaluate the entire property or goods before investing the money and purchasing
2.   In case, you are a seller, you might an assurance from the other party (buyer) that he/she have the potential to make the payment right on the agreed time frame.
3.   There is every possibility that the item that is up for sale is not a product, but a service.

The question that arises is who is the judge is such a case when a complex agreement is agreed upon and signed. This is where an Escrow service provider can be the best option, as it assures that both the parties act as per the agreed upon agreement. Basically, the Escrow company acts more as a middleman and protect and safeguard the assets involved in the transaction process. Henceforth, it becomes even more important to seek the services of a trustworthy and reliable third party, or an Escrow provider while dealing with real estate or an online sale transaction.

How does the Escrow services function?

An Escrow provider acts as a reliable and trusted third party reducing the instances and the risks associated with frauds and scams. The Escrow provider will hold, collect and distribute money only both the buyers and sellers are contended and happy. Let us find out how does the Escrow operates in a step by step process.

Either of the parties, that is, a buyer or a seller will start with the transaction. Both the parties agree to the terms and conditions set and thereby register to the Escrow services.

Via an approved payment method, the buyer will pay the Escrow service provider. The Escrow service provider will verify the payment and the seller is given a notification that the transferred payment has been verified and secured by Escrow.

Once the payment is verified, the seller ships the merchandise and also include a tracking information so that the buyer can monitor the shipment. The Escrow provider verifies that the buyer has received the shipment.

On receiving the merchandise, the buyer gets the option with a fixed number of days to evaluate and whether to accept or reject it.

Once the buyer accepts the merchandise, the Escrow service provider will pay the funds to the seller.

This completes the whole transaction process in a safe and secure way.

You will be kept updated with every step regarding the transaction

After you have created an account with an Escrow.com, you will always be kept updated in respect to the transaction process and what are the actions that you need to take, if any. Whether you are a buyer or a seller, you have an access to the step by step timeline implementation and you know exactly what are the things you need to do with the transaction.

After you have created an account with an Escrow.com, you will always be kept updated in respect to the transaction process and what are the actions that you need to take, if any. Whether you are a buyer or a seller, you have an access to the step by step timeline implementation and you know exactly what are the things you need to do with the transaction.

The time required for the complete Escrow process

The time depends on certain aspects. They include:

The period of evaluation or inspection as agreed upon by both the buyers and the sellers.

The payment method of the buyer

The delivery time frame required from the seller to the buyer

The selected payment option by the seller. In the majority of the cases, it has been found that the purchase can take time ranging from 5 days to 20 days.

Can PayPal or credit card be used as a payment method for the transaction? 

The transaction has not been converted into US Dollars.

When you are a buyer, and your payment in the last six months exceeds the limit of US$ 5000, either by credit card or PayPal.

In case, you are a seller, and the amount paid to you in the last six months exceeds the maximum limit of US$20,000 either by credit card or PayPal.

The transaction includes the buying of a service, merchandise or an automobile.

The transaction will not include the shipping to the confirmed address of the credit card and PayPal.

When you are not reachable on the contact number as mentioned.

The use of the credit card and PayPal is often limited on certain merchandise.

What are the pros of using an Escrow service provider?

There is a vast array of advantages of using an Escrow service while transacting. Let us have a look at some of the pros that it can render.

An Escrow service will assure that the rights of both the buyers and sellers are protected without any partiality during a valid transaction.

The disputes, if any, between the buyer and the seller are handled and managed with the best possible ways.

The payment made the buyer is verified by the Escrow service provider and kept in a secured manner for the seller.

The Escrow service ensures that the merchandise is tracked so that it gets delivered right on time as per the conditions and terms agreed upon by the parties.

Unless and until the buyer accepts the merchandise after fully inspecting, the seller will not be paid by Escrow.

The buyer has to make sure that the inspection is executed only within the time frame agreed upon, or else the seller will get the payment when the time comes.

The entire process of the transaction takes place under the strict supervision and evaluation of Escrow service providers. Hence, there is nothing to be concerned about.

Because of the sliding revenue scale of Escrow service, you don�t have to be concerned much about the huge fees and charges.

When you make use of the licensed Escrow service in order to buy or sell a merchandise, you can be assured that you are executing the transactions online in the most hassle free and convenient manner.

Whether buyer or seller, the Escrow service acts as the reliable and trustworthy third party agent, ensuring the secure, interactive and safe transaction for both the parties.

Association of the real estate and Escrow service

One of the most common uses of the Escrow services is the sale and purchase of real estate property. An Escrow officer will take up the responsibility to verify that inspections and evaluations, the disclosures and all the agreement terms and conditions are completed and dispute resolved with the stipulated time period. The Escrow service will make sure that the conditions of the contract or agreement are satisfactory for both the parties. Once the property ownership gets transferred to the buyer, and the seller received the payment, the transaction is complete.

Escrow services for online sales and purchases

If you thought that the Escrow services are useful and beneficial just for the sale and purchase of property, you are absolutely wrong. There is yet another common use of the Escrow services. It can be really helpful during a transaction that involves online sales and purchases.

The online sales, are no doubt, very risky, because of the fact that you are dealing with someone who is an absolute stranger, and you don�t know anything about him/her. Moreover, the stranger might be located miles away, which makes taking legal action in case of a dispute or a fraud way expensive and something impossible.

Who doesn�t want to have a wide array of potential buyers, especially when you are a seller? The question is how it is possible, making the online transaction safe and secure? It is absolutely not possible and even practical to ask the buyers to sign a safe form of payment, especially for the luxury items. In fact, there are several online scammers who take the undue advantage of the sellers.

A third party keeps a track over the transaction

Both the buyers and the seller can really benefit from a third party referee that keeps a watch over the transaction process completely. This is where an Escrow service can be of immense help for both the buyers and seller, protecting their rights and handle the transactions taking place. There is an agreement on several terms and conditions done between a seller and buyer. Some of the common terms include:

 The amount that the buyer is entitled to pay.

 The way and the time the seller will ship the merchandise.

 The time frame given to the buyer (if applicable) to inspect the merchandise and reject if not satisfied with the quality.

The above mentioned is an example of the details provided to an Escrow service provider. Once it is done, the buyer and the seller have to act as per the agreed upon terms and conditions of the agreement. In case, there is a situation when the seller doesn�t send anything, the buyer will get back the money from the escrow service provider. In case, the buyer doesn�t approve that the shipment has arrived, the Escrow service provide will make the payment to the seller.