Two Key Things to Watch When Buying a House

1. Escrow

Legally, escrow exists to protect homebuyers. If the buyer and seller skip escrow and handle payment directly, they risk a number of complications: the seller may not receive the full purchase price, while the buyer may fail to obtain ownership within the contractually agreed timeframe and also lose the ability to reclaim funds already paid. A second scenario arises when a buyer, having paid in full, requests an early transfer of title but defers payment of the balance. If the buyer has very little liquid capital and plans to mortgage the property to free up funds for rolling purchases of multiple homes, this can easily snap the cash flow chain—leaving the seller unable to collect the outstanding balance and, worse, stripped of ownership.

Furthermore, if the seller’s property still carries a mortgage and intends to use the buyer’s funds (typically the down payment) to pay it off, two risks stand out. First, the seller could divert the buyer’s money for other purposes, leaving the existing lien unpaid, blocking the title transfer, and preventing a smooth closing. Second, the property might actually be subject to multiple liens; the buyer’s payment would then cover only a portion of the debt, delaying or complicating the release of the mortgage. For the buyer, the worst that can happen is a delayed transaction—or, in severe cases, both money and property lost.
Escrow also acts as an effective check on buying-and-selling chains. Many buyers follow the “sell small to buy big” strategy, disposing of a smaller unit first and then adding cash to upgrade. While escrow safeguards buyers, it heavily inconveniences sellers, who must wait to access their proceeds. When prices rise, sellers end up bearing a significant loss.

2. Handling online signing, title transfer, and related procedures independently

You can prepare all necessary documents and complete the filings yourself, avoiding hefty agency fees. (When both parties trust each other, you can skip the agent altogether and save roughly 3% in commissions.)