WHAT IS ESCROW? WHAT FUNCTION
Hello cuan friends, let's get to know more about escrow! With advances in technology, buying and selling transactions can now be done online. Because there is no face-to-face meeting between the buyer and the seller, there is always a risk of loss for both parties. However, this can now be minimized with a Sequester account. What actually makes sense and its uses? Here's the full explanation. Definition of escrow An escrow is a legal document that contains an agreement over assets – usually in the form of a monetary, temporary third-party registration, until the clauses in the agreement are met. Application of all tangible Sequestre accounts, provided by third parties as a temporary place for deposits, to accommodate and channel funds to the parties concerned. Conveniently, an Escrow account is a joint account managed by a third party or sequester agent. This agent is not only responsible for managing the funds, but must ensure that all parties involved fulfill their obligations and obtain their rights. For example, when you purchase goods through online shopping and sales sites, the agent will receive an amount based on the price of the article ordered and the addition of shipping costs. The funds paid will be placed in the Sequester account until the seller delivers the goods to the buyer in a moment. If the buyer manages to get the goods, the funds will be distributed directly by the seller. Hospitality commitment It cannot be denied, security is one of the important factors for consumers and sellers before proceeding to make buying and selling transactions. The main vision of the existence of escrow is to increase safety when financial transactions occur. This makes the parties involved receive their rights as they should. By buying and selling merchandise online, for example, shoppers often fall victim to fraud. If there is no commitment involved, the article will be sent when the seller has received some of the buyer's funds via bank transfer. Unfortunately, this point is a crime loophole. Some sellers have found that they do not ship merchandise, even if they have received the funds. With the presence of Escrow, the process of paying for articles does not go directly to the seller's account, but will temporarily be placed in the Rapid account. In fact, when the item is not sent by the seller to the agreed limit, the funds transferred by the buyer will be returned automatically. Funds in Sequestre accounts have a time limit. Not only buyers, sellers are protected by their rights. In some cases, the seller has suffered a loss. For example, there are buyers who claim to have transferred funds to the seller's account according to the nominal purchase article. Even if in fact, it hasn't been done yet. Sellers who are constantly under pressure can send goods immediately without first checking against account balances. This will definitely be very detrimental. The role of the escrow agent is to confirm whether the payment process is actually taking place. After that, when the buyer receives the order, the seller will get his rights in the form of funds transferred by the buyer. This Sequester Account Service System has received positive audience response because it has been considered capable of eliminating the number of fraud cases in online purchases and sales transactions. As well as being used in the online buying and selling process, Escrow accounts are also frequently used in the process of buying a house, renting land and fintech services. Home purchases, for example, a potential buyer will provide a deposit to prove to the seller that you are serious about buying the product being offered. To ensure that there is no fraud later, a purge account is used. So, in the future, the purchase agreement between the two parties cannot be reached, the consumer will immediately receive a refund that has been channeled. An Escrow Service is a service that can be provided by a private company (Individual Sequester) or by a company with a legal entity (Escrow Company). However, now various banks have also provided escrow services to increase consumer confidence. To open an escrow account, find a trusted agent. The agent will later carry out supervisory duties in channeling funds and may not side with anyone involved. Prepare supporting documents and agree on a win-win agreement for all parties. This is an explanation of what escrow is and what it's used for. Of course, the benefit of having an escrow account is that you guarantee your rights as both a buyer and a seller. Immediately take care of opening an account so that your buying and selling transactions can take place comfortably.