1.a bond, deed, or other document kept in the custody of a third party and taking effect only when a specified condition has been fulfilled.
a deposit or fund held in trust or as a security.“an escrow account”
the state of being kept in custody or trust.“the board holds funds in escrow“
1. place in custody or trust.
ESCROW IN REAL ESTATE
Escrow is how real estate transactions are completed in parts of the U.S. primarily on the West Coast. A neutral third party ( escrow officer ) receives and disburses money and or property on behalf of the transacting parties ( buyer and seller ) with the disbursement contingent on terms in the agreement being met.
In more simple terms it’s when a buyer and seller come to an agreement to sell/buy real estate and then to complete the sale they enter into escrow together. The terms of the agreement must be met and he escrow officer will follow the instructions of the contract to complete the transaction. You’ll often hear just opened ESCROW!
Look for my next post that goes over the general process of what happens if you’re a buyer who has just opened escrow on a property.