The Ultimate Guide to Using Escrow Services in 2023

The Ultimate Guide to Using Escrow Services in 2023

What is an escrow service?

An escrow service involves a third party, usually some legal body e.g. law firm or lawyer assuming the role of an escrow agent and establishing a secure holding account on behalf of a buyer and a seller in a contracted transaction. This escrow agent holds the funds related to the transaction in this secure holding account until the terms of the contract have been fulfilled by both parties. 

Benefits of escrow services:

  • Escrow services are an excellent solution for transactions that involve parties who don’t know one another or who are located at a significant distance from one another. 
  • They’re also particularly useful in large scale transactions for which fraud and scammers are a serious threat such as purchasing real estate or a car for example. 

Where can you find escrow services?:

  • The more traditional escrow services include as mentioned: lawyers, predominantly providing an escrow service for real estate transactions. 
  • Other options include a title company or some third party who offers a similar service like Trustap

Trustap further explained:

Trustap offers an escrow-like solution by providing a secure holding account through which funds can be deposited, held, and transferred. This process is very similar to that of a traditional escrow service as it involves an unbiased third party holding funds on behalf of both parties in a transaction, protecting the interest of the buyer and the seller alike.

Why choose Trustap over traditional escrow services?

Where Trustap differs from traditional escrow services is that the entire process is much quicker and easier than a standard escrow provider. A transaction carried out with a traditional escrow service can typically take anywhere from 5-20 days with a large portion of that time being consumed outlining specifics such as: the complaints period and the payment method the parties will use. However, with Trustap these elements of the transaction are predetermined. Instead, the users must only decide on the price of the item and whether the transaction will be carried out online (involving a tracked delivery service) or whether they will meet in person. Under ideal circumstances if the parties were to carry out an in person transaction with all aspects of the transaction running smoothly, the transaction could be completed within a number of hours. 

This swift and easy process has made escrow-like transactions much more accessible and understandable to the general public. This accessibility makes the process that bit more attractive to a larger number of people which could see the services being used more and more often. 
Therefore, if you want to get a head start on learning how these types of services work you can visit our homepage.

To get all the details on how our secure transaction platform works or to watch our quick explainer video to find out how Trustap works.

By Luke Nicholson