What Is Escrow?

An escrow is something of value such as your deposit of funds, a deed, other instrument, or documents such as your purchase and sales agreement, that are given to an impartial third party to hold until specific conditions are met. When everything is finished the escrow will close.

When opening an escrow, the buyer and seller of a piece of property establish terms and conditions for the transfer of ownership of that property. These terms and conditions are given to a neutral third party known as the escrow holder, or in this case, Escrow Results. The escrow holder has the responsibility of seeing that the terms are carried out. Escrow Results does this by providing an independent neutral account by which the interests of all parties to the transaction are protected.

The escrow agent is a “storehouse” for all monies, instructions and documents necessary for the sale of your home. This includes the buyer providing funds for a down payment, and the seller depositing the deed and any other necessary documents.

When the buyer and seller have signed all the paperwork and all the funds have come in, the closing agent oversees the recording of the documents with the county then disburses the funds.

When the deed is filed, title to the property is transferred to you, the new owner. The transaction is complete. The escrow is closed (meaning when the deed has been recorded with the county and everyone is paid).

Buyer and the seller will receive a final closing statement and other documents. Check the statement carefully and file the statement with your most important papers. You’ll need it when you file your next income tax return.

Remember, the concept of the impartial third party is someone with nothing to gain or lose from your real estate transaction.