What is an escrow

An escrow is:

• an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money and/or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfillment of contractually-agreed conditions by the transacting parties, or
• an account established by a broker, under the provisions of license law, for the purpose of holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction;or,
• a trust account held in the borrower’s name to pay obligations such as property taxes and insurance premiums.

The word derives from the Old French word escroue, meaning a scrap of paper or a roll of parchment; this indicated the deed that a third party held until a transaction was completed.

 

How long does the escrow process take?

It depends upon :

• The inspection period agreed upon by both parties.
• The Buyer’s payment method
• Delivery time from Seller to Buyer.