|
Q.What is an escrow?
A.California Financial Code Section 17003 defines "Escrow" as any transaction where a person deposits money, a deed, or other written document to effectuate the sale, transfer, encumbering, or leasing of real or personal property to another person or entity pursuant to various terms and conditions. An escrow is a neutral party to the purchase and sale of real estate whose primary purpose is to safeguard and hold money and documents until all of the terms and conditions of the purchase and sale agreement and accompanying escrow instructions have been fulfilled.
Typical escrow instructions will direct the escrow company to accept the deposit of money from the buyer, secure the release of any contingencies imposed by the purchase and sale agreement, prorate the property taxes, request issuance of a title insurance policy, prepare final accounting statements for both the buyer and the seller, prepare and record the deed, disburse the buyer's funds, and close escrow.
|
|
