Real Estate Glossary

What is escrow?

Escrow is a process in which a neutral third party, called an escrow agent, holds onto important documents and funds related to a real estate transaction until the completion of certain conditions or actions. The escrow agent ensures that all the terms and conditions of the purchase or sale agreement are met before releasing the funds and documents. This process is often used to ensure that the buyer has paid the purchase price, and that the seller has transferred clear title to the property to the buyer.