What is Escrow?

Escrow describes the services of a person to quickly and safely close your real estate transaction. Title to a seller’s property is held safely until all terms are complete. A buyer may deposit funds with the escrow agent and be protected because they will be held in trust until the transfer of the property.

Since a real estate transaction takes time to prepare the title commitment, the closing documents and complete financing requirements, an escrow provides one place where the funds and documents may be deposited with disbursement only when all of the contract conditions are met.

The escrow agent is an independent third party who will perform these services impartially, protecting both buyer and seller, and acting on the written instructions from lenders, attorneys, brokers, agents and other involved parties.
The escrow agent will record the required documents, payoff the existing liens or mortgages, prorate real property taxes, rentals, maintenance and other fees and any other property expenses so that the closing is correctly completed.