Escrow is an arrangement in which a neutral third party, called an escrow holder, holds legal documents and funds on behalf of a buyer and seller. The escrow holder then distributes these documents and funds according to the buyer's and seller's instructions.
HOW IT HELPS BUYERS AND SELLERS
People buying and selling real estate often use an escrow account for their protection and convenience. For buyers, escrow allows them to have the holder disburse the purchase price only upon the satisfaction of certain prerequisites and conditions.
Sellers, meanwhile, can instruct the escrow holder to retain possession of the deed until certain requirements, including the receipt of the purchase price, are met. Both rely on the escrow holder to carry out their mutually consistent instructions. Buyers and sellers also can receive advice from the holder if certain instructions are not mutually consistent or cannot be carried out.
Contact our escrow company in Leona Valley, California, for more information about escrow.