What is an Escrow

A Common Question

An escrow is an arrangement in which an impartial third party, known as the Escrow Holder, holds legal documents and funds on behalf of a Buyer and Seller, and distributes them according to the Buyer’s and Seller’s instructions.

This escrow process was developed in order to help facilitate the sale or purchase of property. It achieves this by performing the following duties:

• Acting as the impartial third party, or depository of documents and
• Processing and coordinating the flow of documents and
• Keeping all parties informed of progress on the
• Responding to the Lender’s
• Securing a title insurance
• Obtaining approvals of reports and documents from the parties as
• Prorating and adjusting insurance, taxes, rents,
• Recording the deed and loan
• Maintaining security and accountability of monies owed and