Step 11: What the heck is Escrow

One of the most frequently asked questions is: What are Title and Escrow?

Escrow is a neutral third party that reviews the contract, reviews the title reports, and holds the money. In many States, buyers and sellers use Attorneys to complete this work. In our state Escrow handles this role.

Here is how it is legally described:

At its essence, escrow is the process whereby parties to the transfer or financing of real

estate deposit documents, funds, or other things of value with a neutral and

disinterested third party (the escrow agent), which are held in trust until a specific event

or condition takes place according to specific, mutual written instructions from the

parties. Escrow is essentially a clearinghouse for the receipt, exchange, and distribution

of the items needed to transfer or finance real estate. When the event occurs or the

condition is satisfied, distribution or transfer takes place. When all of the elements

necessary to consummate the real estate transaction have occurred, the escrow is

“closed”.

So what the heck does that mean?? Please watch these videos for an easier to understand description:

What is Escrow?

What is Title?

Still have questions? Give me a call @ 253-988-8252