By arrangement with our banking partners, we are able to provide our clients with individual accounts or ledgers for escrowing funds even outside of a real estate transaction. Whether it is a business asset transaction, SBA loan, earnest money deposit, distributions pursuant to court order, or any other type of escrow,
Birmingham Title Agency is happy to hold your funds as an independent third party, knowing the value this service adds especially in conflict situations. We draft customized escrow agreements with your specific terms in mind.
Oftentimes in business relationships, there is a need for a neutral third party, especially when funds are involved. It is important to differentiate that as attorneys, we can be advocates for our clients, but our default position in most transactions is neutrality.
Our ability to be a neutral third party in certain situations can provide you and your client significant benefits. First, as a title agency, we are equipped and experienced in handling client funds. We have the latest technology and relationships with the premier vendors in the banking and accounting industries.
Birmingham Title Agency uses a third party reconciliation service that reconciles between our bank accounts and our title software system every fifteen minutes. This vendor provides daily reports of any exceptions found during reconciliations and provides us and our clients peace of mind that funds are exactly where they should be at all times.
Birmingham Title Agency is routinely audited by our underwriting and banking partners, which allows us to excel in our escrow services. Since the inception of Birmingham Title Agency, we have passed all our escrow audits, exceeding well beyond the minimum requirements for security and documentation of our escrow funds.
Birmingham Title Agency views its fiduciary duties with the utmost seriousness. Because our neutral third party relationships are documented by a custom detailed escrow agreement, you and your clients have the assurances you need that the funds are being handled per your instructions, and without ulterior motives.
Our banking partners
Secondly, our banking platform allows us to provide individual ledgers tracking your specific transaction, or separate accounts created in your client’s name individually with our oversight. We maintain both long term and short term escrows for our clients.
Our insurance—your peace of mind
Lastly, as a title agency we are also required to hold extensive insurance coverage relating to the funds we have control over. In addition to the standard professional liability and errors and omissions policy, we also maintain cyber and crime policies, protecting our clients from social engineering, wire fraud, email hacks, and the numerous other ways funds can be jeopardized.
With the endless variety of ways technology can be hacked, it is never a matter of if an attack occurs, but when, and how you are prepared when it happens.. Our employees are extensively trained on how to recognize and report wire fraud. Additionally, we limit the majority of the escrow services provided to be handled by management exclusively. Our many policies detail the steps we need to take as escrow agents to insure that any and all losses are covered, and we are diligent in exceeding these requirements.
There are numerous circumstances that could arise where a neutral third party escrow agent can be involved. A common situation is the transfer of business assets, with no accompanying real estate transfer. Birmingham Title Agency is often asked to hold escrow funds for a specified period of time, for items such as repairs that need to be made, or a payment amount that is being disputed. By having your client put the funds in escrow, it can go a long way to resolve a dispute by showing good faith, and depositing the funds in a timely manner while the dispute is negotiated. A 1031 Exchange is another way Birmingham Title Agency can help with escrow services, through its in-house Qualified Intermediary, Birmingham Exchange Company. Please see 1031 like-kind exchange services for additional information.