Keyword Analysis & Research: escrow

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Frequently Asked Questions

What is escrow and how does it work?

An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

What is the purpose of escrow?

There are two major situations in which escrow is required: in an auction purchase or in a sale of land. The purpose of an escrow account is to keep money safe and secure until a given event takes place and to act as a guarantee to the seller of an item that the buyer is actually interested in and capable of purchasing the item.

What does the term escrow mean in real estate?

The legal definition of an escrow is where principals in the sale of real property hand to a neutral third party (escrow agent/holder) the items needed to legally transfer the title from the seller to the buyer. Things that go into the escrow can include written instruments, money, title evidence and personal property.


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