What is an Escrow Shortage?

It has happened on more than one occasion, that we wish to obtain or undertake a project regarding the purchase of our property, construction of our house, purchase of a vehicle or any other acquisition, but at the time of the transaction unforeseen expenses arise that affect our main business payments, generating setbacks and even major expenses due to reimbursements and non-compliance with payment deadlines.

How can I be sure that I will not have any unforeseen expenses during the closing of my transactions?

The first step is to work with an escrow company that guarantees a Due Diligence, by means of which a study of the current status of all possible expenses or charges that may be incurred is carried out.

As a second step we have to make sure that the Escrow or Real Estate company that supports us in our business, makes sure that they have enough knowledge and experience in closing transactions of this type in order not to expect last minute surprises.

Thirdly, we know that most of the secondary expenses such as municipal or tax payments are annual payments, so if our business closing takes more than one collection period, we can make an additional security deposit so that future obligations can be paid successfully without affecting the main business amounts.

Always seek professional advice to carry out your investments, and the best management of your money to successfully fulfill your dreams.