PORTLANDIA’S ESCROW SUMMARY:
Watch this! Maybe it isn’t the best description ever, but Portlandia’s view is indeed quite entertaining. Click the link: The S-crow
WHAT IS ESCROW, REALLY?
An escrow is a deposit of funds, a deed, or a similar instrument by one party for the delivery to another upon completion of a condition or event. In a real estate transaction, escrow is a neutral account led by an escrow officer by which all interests of each party to the transaction are protected.
To open escrow a buyer and seller agree on terms (this is when an offer is accepted) and establish conditions for the transfer of property ownership. The third party, the escrow officer, is there to help see that the terms are met prior to closing and prior to the transferring of ownership.
Escrow can hold any money or documents necessary for the sale to happen, for example earnest money or deposits for rent back periods, sale agreements, etc., and assists buyers and sellers to sign closing and loan documents as needed. Once you are pending to purchase a property, you are in escrow!