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Dwight Calwhite explains what escrow is and how it works in real estate. An escrow company holds your earnest money and handles closing, protecting both buyer and seller through contingencies and final verification steps.
Dwight Calwhite explains what escrow is and how it works in real estate. An escrow company holds your earnest money and handles closing, protecting both buyer and seller through contingencies and final verification steps.
Ever wonder what happens to your money between making an offer on a house and officially getting the keys? That's where escrow comes in. In real estate, escrow is a neutral third-party account that holds funds and important documents during a transaction. Think of it as a financial safety zone. Neither the buyer nor the seller can access the money until all the conditions of the sale are met. Let's say you're buying a house. Once your offer is accepted, your earnest money deposit goes into escrow. That deposit stays there while inspections happen, financing is finalized, and paperwork gets completed. The escrow officer, usually from a title and escrow company, makes sure everything checks out before closing. Once all contingencies are cleared, the title and escrow company distributes funds, records the deed, and officially transfers ownership. Escrow protects both parties and ensures a secure, transparent process in what's likely the biggest financial move of your life. Hit that like button for more straightforward real estate info.
