Escrow, what is it?

Escrow is one of the most important and often misunderstood parts of a real estate transaction.
 
At its core, escrow is a secure process where a neutral third party holds funds, documents, and instructions until all the terms of a contract are fully met.
 
It protects both the buyer and the seller by making sure that no money or property changes hands until everything is completed correctly.
 
When you go under contract on a home, escrow begins. The buyer’s earnest money is deposited with an escrow company, and from there, the process becomes a coordinated effort between multiple parties, lenders, title companies, agents, and sometimes attorneys.
 
During escrow, several key steps take place. Inspections are completed, financing is finalized, title work is reviewed, and any agreed-upon repairs or conditions are addressed. The escrow officer tracks all of these moving parts and ensures that every requirement in the contract is satisfied before closing.

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