Real Estate Definition - Escrow
In California and some other states, real estate transactions are settled with the aid of an escrow company and escrow officer. Escrow is a term that is often misunderstood. This following article from CENTURY 21 Award blog and should clarify the terminology.
"Escrow is the timeframe during which an independent third party, known as the escrow officer, receives and disburses money and documents according to the contractual terms of the agreement. The officer's job it is to maintain the integrity of the contract agreed to by the buyer and the seller, remain neutral and to collect all documents relating to the transaction from both parties. He or she will make sure all terms and conditions of the contract are satisfied, that the title is offered free of incumbencies and the purchases monies are transferred to the proper party.
When a buyer is ready to purchase a home the purchase money is deposited in an Escrow account attached to the specific terms and conditions of the purchase contract versus the money being given directly to the seller in exchange for the property. The money will stay in the Escrow account until the transaction is complete, at which point the escrow officer proceeds to disperse the funds to the appropriate parties."
If you still need clarification, feel free to contact me.
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