What is “escrow” and what does it mean to buyers and sellers?
Escrow is a process that begins when the purchase offer papers are signed by both parties, and ends when the loan is approved and all the necessary requirements have been fulfilled by both the buyer and the seller. The escrow holder is an intermediary, and an agent of both the buyer and seller. The escrow holder is given the buyer’s deposit, and holds onto all funds until the agreement is finalized. They notify the seller when the deposit has been received and if the check has cleared the bank. The escrow holder also draws up a set of instructions, itemizing things that have to be done to the property before it is sold and the title is transferred. For example, if the seller is required to supply a termite inspection, the escrow holder would track this obligation and make sure it is fulfilled before any funds are transferred to the seller. Findings in the termite inspection report must be corrected on or before the close of escrow. If the report calls for a plumber, roofer or other con
