“Escrow” is another term homebuyers and homeowners come across during a real estate transaction.
Escrow is an arrangement whereby a third party performs certain tasks to facilitate a transaction between parties to that transaction until those parties have fulfilled their contractual obligations.
It can get a little confusing since escrow services are used in different contexts. For real estate, purchase and sale of a home and mortgage are two primary ones. Watch this video to learn more.
P.S. The video mentions “Earnest Money”, which is another term that your probably have come across. In case you would like to learn more about it, please click here.