What is Escrow and How Does It Work?
When people put their money in escrow, it means they are giving it to a third party, who will hold it until the party who will receive the money fulfills certain tasks. This ensures a smooth transition for all parties involved- most of the time. An escrow agent or officer heads up the major tasks and does most of the preparation leading up to the escrow closing date. When that date arrives, both parties will have fulfilled all of their obligations so that the money can official change hands. It is not an especially complicated process for anyone other than the escrow agent, but it can be frustrating if the parties involved do not do the things they should.
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