Knowledge Focus: Escrow
Escrow
Escrow is the situation where a deed, funds, or a property is held in trust, by a neutral third party, to be turned over to the grantee only upon fulfillment of a contract or agreement. The written agreement used to initiate most real estate property escrows is called a real estate purchase agreement and receipt for deposit (depending on the state/county). This contract is augmented with detailed escrow/contract instructions. These documents become the foundation for the closing escrow/title agent to complete for title closing. Escrow is also used as in the terms escrow deposit or earnest money.
