What is Escrow?
TitleOne, a title and escrow co. provides a clear and comprehensive explanation how escrow works.
An Escrow is a deposit of funds, a deed or other instrument by one party, (the buyer), for the delivery to another party, (the seller), upon completion of a specific condition or event. It is an independent neutral account by which the interests of all parties to the transaction are protected.
When opening an escrow, the buyer and seller of a piece of property establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a third impartial party known as the escrow holder. The escrow holder is responsible for seeing that the terms are carried out.
The escrow is a store-house for all monies instructions and documents necessary for the sale of your home. This includes the buyer providing funds for the down payment, and the seller depositing the deed and any other necessary documents.
An escrow provides all parties a guarantee that no funds or property will change hands until all of the terms and conditions have been met.