What is escrow?
Escrow is a neutral holding arrangement where money or documents are kept until conditions are met.
Why it matters
It protects both sides in a deal by not releasing funds until everyone does their part.
Common confusion
Escrow holds items; it is not the same as a mortgage or the loan itself.
Frequently Asked Questions
Who controls the escrow?
A neutral escrow agent or title company follows the contract’s instructions.
When is escrow closed?
When all conditions — inspections, funding, recordings — are satisfied.
Do I pay escrow fees?
Yes, usually split between buyer and seller per the contract or local custom.