Escrow F A Q 's

What is an escrow closing?​

An escrow closing is a process where a neutral third party holds funds and documents related to a real estate or business transaction until all the conditions of the sale are met.

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The dictionary definition of escrow is a document, deed, or monetary instrument deposited with a neutral third party, to be delivered to grantee upon fulfillment of specified conditions.

 

So to break it down...In a real estate transaction, the buyer is depositing funds with escrow and the seller a "deed", which shall convey property to the Buyer once the contract obligations have been satisfied.  Once the deed is conveyed to the Buyer (recorded) the funds are released to the Seller.

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In the sale of a business, the Buyer deposits funds with escrow, and the Seller a Bill of Sale, Stock Transfer certificate, or other conveyance documents for the purposes of transferring the ownership of the business assets or stock to the Buyer once the contract requirements have been satisfied.