Definition of 'Escrow Agreement'
The escrow process typically begins when the buyer and seller sign a purchase agreement. The purchase agreement outlines the terms of the sale, including the price of the property, the closing date, and any other conditions that must be met before the sale can be finalized.
Once the purchase agreement is signed, the buyer will deposit a down payment into the escrow account. The escrow agent will then use this money to pay for the closing costs, such as the title insurance, the real estate agent's commission, and any other fees that are associated with the sale.
The escrow agent will also hold the deed to the property in escrow until the sale is finalized. This means that the seller cannot sell the property to anyone else until the buyer has met all of the conditions of the sale.
The escrow process is typically completed within 30-60 days. However, it can take longer if there are any delays in the closing process.
Once all of the conditions of the sale have been met, the escrow agent will release the funds from the escrow account to the seller. The seller will then sign the deed to the property and deliver it to the buyer. The buyer will then take possession of the property.
An escrow agreement is a valuable tool for protecting both the buyer and the seller in a real estate transaction. It ensures that the funds are held in a safe place until all conditions of the sale have been met. It also helps to prevent the sale from falling through due to delays in the closing process.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.