Re:Ethereum Is a Dark Forest
by treis on Friday August 28, 2020 @09:41PM
(#24312525)
You aren't (usually) wiring the money to the property owner. It goes to the title or escrow company processing the transaction. They get the money, execute the paperwork, and then transfer the money to the owner after everything is squared away.
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What is the incentive to use an escrow instead of dealing with the owner directly? How do I know the escrow won't run away like a crow with my money and the house?
The escrow company is supposed to be more reputable than the owner. They also handle this type of transaction, and know how to get it done properly, how to check the seller actually owns the house etc.
Not all the money goes to the home owner. Typically some goes to the bank for the mortgage, some to the buyers agent, some to the seller's agent, some to taxes/fees, and so on. The escrow/title company calculates all of this and ensures everyone gets their money.