When we think of an escrow business We immediately think about real estate. This is not surprising property is a high-priced item.
The word”escrow” is derived in Old French escroe and actually is “scroll.” Imagine the image of a Dickensian Scribe pouring over and meticulously filling up the scroll to the last detail ink. It was a feat of endurance that is still the hallmark of the escrow firm of today. As you are aware, the volume of paperwork involved during a property transaction could be daunting.
Escrow is a service that fulfills a need in other areas than real estate.
An Escrow company is a third-party operation which holds property or money given to another party to release after certain conditions are fulfilled. It is currently used in all transactions involving high-value commercial and personal properties, such as companies and websites, as well as for the conduct of personal-to-person auctions via remote (such such as eBay).
An online escrow service performs payment processing exactly the similar to its brick and mortar counterpart, and is subject to the same strict regulations and legal obligations.
There is no guarantee that every seller or buyer online has a motive to scam you It’s far from it. But, the non-delivery of goods purchased and Internet auction fraud be the most commonly reported cybercrimes in the United States for the year 2008, accounting for 58.4 percent of all cyber-related crimes reported.
This amounts to more than 160,000 cases of delivery delays and Internet auction-related fraud. If you consider that the the conventional wisdom is that only one out of seven cyber-related crimes is actually documented, the total number of instances that are not delivered and Internet auction fraud may reach at least 120,000.
It’s still a tiny percent of transactions on the Internet for example. eBay for example, which boasts more than 4 million transactions every day. However, the number is sufficient to make you sit up and pay attention. You are likely to encounter a scammer.
There is more than just the fraudulent aspect of online transactions that argues for the usage of an escrow company.
If buyers and sellers aren’t acquainted – for the sake of getting a peaceful night’s rest, they must seek out an intermediary they can be confident in. The online escrow business serves exactly this purpose.
A legitimate escrow business is authorized to conduct business by its state of origin and to be able to conduct business nationwide, it must be licensed in both the States of Idaho as well as Arizona.
It is the primary point of contact for tracking and manage every aspect of transactions, including third-party suppliers.
A company like this reduces the risk of fraud through its role as a trusted third-party which collects, stores and releases funds in accordance with the instructions of both sellers and buyers.