Who is the beneficiary and/or owner of an escrow account?

4 Replies

I have an odd question, hopefully some one knows the answer. Purchase and Sale agreement, buyer is to pay all closing cost. No title company, no attorney, no realtor. The buyer placed the earnest deposit into an overseas escrow account. To be made available to the seller. Which party would be considered as the owner or beneficiary of the actual account? And who would be financially responsible to ensure the funds are transferred into the seller's personal banking account in the US? Would this not be considered as a part of the closing cost?

Originally posted by @Randall E Collins :

Purchase and Sale agreement, buyer is to pay all closing cost. No title company, no attorney, no realtor. The buyer placed the earnest deposit into an overseas escrow account.

No title co or closing attorney, no deal.

Are you sure you are dealing with the owner?   Who does the county assessor state is the owner?

I'd also go deeper in my preliminary title search to see the deed on county recorded docs site.

I fear the beneficiary of your money is the scammer. 

Originally posted by @Steve Vaughan :
Originally posted by @Randall E Collins:

Purchase and Sale agreement, buyer is to pay all closing cost. No title company, no attorney, no realtor. The buyer placed the earnest deposit into an overseas escrow account.

No title co or closing attorney, no deal.

Are you sure you are dealing with the owner?   Who does the county assessor state is the owner?

I'd also go deeper in my preliminary title search to see the deed on county recorded docs site.

I fear the beneficiary of your money is the scammer. 

First are you buyer or seller ?  Second US transaction then money needs to be in the US..

there are independent escrow agents in the US that are not closing companies or attornies.. they do exist.

I have used them before.. but instead of a standard EM deposit to a title or attorney escrow.. that requires both buyer and seller to sign off on to be returned or used in the transaction. 

independent escrow company can take unilateral escrow instructions from the person putting the money in.. this is what I have done.

my instructions are normally you are to hold this money for this transaction.. If I request you release them to me ONLY my signature is required. 

if in your case this is a vanilla US SFR small MF or commercial.. I fear your bring scammed as Steve alluded to.

but of course you dont provide near the information or back story to really get any relevant feed back other than speculation from those of us who are contributing to your thread.

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Some title companies will also hold escrow on a deal they are not running title on.  I just did it for a client who didn't trust the buyers' attorney (and his title co.)

I am the transaction coordinator in this, the seller is my client. The buyer is who requested no title company and allegedly set up the escrow account. My client and I both agree it has the stench of fraud or scam. Knowing that my client choose to at least give it a try. The alleged escrow agent is the person who says my client is the owner and/or beneficiary of the escrow. As such he is responsible to pay the transfer fee. Which he's not going to do of course. Basically I'm trying to gather as much information as possible to prove it's a scam to my client. I've already reported it to ic3.gov as online scam. As a side not or bit of advise to others. Stay away from a website called Connected Investors. In my opinion they support many type of scammers, I've came across several.