What does Escrow mean?
“Escrow” can mean different things to different people. Michigan is a non-escrow state, meaning that the buyer and seller closings take place simultaneously with both parties normally present. Collectible funds are brought to the closing by the buyer and typically disbursed to the seller at the closing. Frequently a portion of the seller’s proceeds is ‘held in escrow’ after the closing by the real estate broker or title company for the future payment of water bills, seller occupancy charges or repairs that may need to be made to the property. These funds will only be held based upon the written agreement of both the buyer and seller and an escrow agreement which will be signed at closing.
