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
So what the heck does that mean?? Please watch these videos for an easier to understand description:
Still have questions? Give me a call @ 253-988-8252