Buying or selling a home comes with a lot of decisions—some of which may feel out of your control. Many buyers and sellers assume they have to use the escrow company recommended by their real estate agent, but that’s not actually the case. You have options, and understanding your rights can make a big difference in your transaction.
At Neighborhood Escrow, we believe in transparency and empowering clients with the right information. Here’s what you need to know about choosing an escrow company and why it matters.
Who Chooses the Escrow Company?
The simple answer: It’s a mutual decision.
In Texas, the buyer and seller negotiate and agree upon the escrow company during the contract phase. While one party—often the real estate agent—may suggest a provider, this recommendation is not binding. If there’s disagreement, the choice of escrow company can become part of the negotiation process, just like price and repairs.
Why Do Agents Recommend Escrow Companies?
Real estate agents often suggest escrow companies they’ve worked with before. This familiarity can be beneficial because agents prefer working with professionals they trust to handle transactions smoothly. However, it’s important to know that you are not obligated to go with their recommendation. You have every right to do your own research and choose an escrow company that best fits your needs.
Is There a Conflict of Interest?
While agents commonly have preferred escrow companies, ethical agents and brokers do not receive referral fees or incentives for their recommendations. In Texas, escrow companies are typically title companies, and they must comply with state regulations that prevent conflicts of interest.
To avoid potential conflicts, many buyers and sellers opt for an independent escrow provider—like Neighborhood Escrow—that operates solely in the best interest of all parties involved.
Why Your Choice of Escrow Company Matters
Escrow is more than just a formality—it’s the neutral foundation of your transaction. Your escrow officer plays a key role in:
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Holding deposits and funds in trust
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Managing title and closing documents
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Coordinating between all parties involved
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Ensuring contractual obligations are met before closing
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Protecting both buyers and sellers as a neutral third party
An inefficient or inexperienced escrow provider can cause delays, errors, or even legal complications. Choosing a reliable, transparent escrow company helps ensure a smooth, stress-free closing.
Questions to Ask Before Choosing an Escrow Agent
Whether you go with your agent’s recommendation or find your own, here are some essential questions to ask:
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Is the company licensed and bonded in Texas?
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Do they have experience with your type of transaction (residential, commercial, FSBO, etc.)?
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How do they handle communication and document access?
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Are their fees transparent and easy to understand?
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Are they truly independent, or affiliated with a specific brokerage?
Take Control of Your Transaction
Selecting an escrow company is one of the most important decisions in your real estate transaction. At Neighborhood Escrow, we provide independent, experienced escrow services with a commitment to exceptional customer care.
If you’re buying or selling a property and want peace of mind throughout the process, give us a call at (346)385-5308. We’re here to answer your questions and help you navigate your transaction with confidence.