Escrow Agents in commercial real estate

Hello everyone, today is another installment in our property acquisition series and we are going to cover Escrow Agents and their relation to the purchase agreement. My name is Annie Malo and I am a commercial real estate attorney at a top Boston firm. I have handled thousands of real estate transactions nationwide over the course of my career, and today we are in my husbands hometown Gloucester Massachusetts. One key part of a transaction that many Buyers and Sellers overlook is the selection of the Title Company & Escrow Agent. While this is often the same company, the Escrow Agent and Title Company have two distinctly different roles and responsibilities. The Escrow Agent is the party that holds the earnest money deposits and coordinates the final closing. Commercial closings differ from residential because they are often conducted via “escrow” meaning documents are negotiated and signed well in advance of the date of Closing and delivered to the Escrow Agent to hold and confirm receipt. The Escrow Agent then receives all funds from the Buyer and disburses all funds to the different vendors who need to be paid at closing and ultimately the final proceeds to the Seller. Having an Escrow Agent that has a good working relationship with the Buyer’s attorney can really make closing smooth. I have a number of escrow agents I work with on a regular basis, and through my relationship with them I can shave significant time off the closing of a deal. Which when you are paying your attorney by the hour can have a large impact on the legal fees you pay. If you have recommendations for topics you would like me to cover in future videos, add them in the comments below. I have managed deals throughout the entire country so if you have questions on your own transactions feel free to contact me at anniemalo.com, Until next time, HAVE A NICE DAY