Escrow is a third party that helps both sides of a transaction come together. And in agreement complete that transaction. The way I think about it is if you’re going to buy a car and you go to somebody’s house to go look at the.
Everything looks good. Now, what do you do? He has the title to the car. You have the money. So, you have to trust that person, that the car is going to be transferred into your name. He has to trust you that you’re going to give him money. If those people don’t know each other, that’s where an escrow would come in.
“You have to trust that person, that the car is going to be transferred into your name. He has to trust you that you’re going to give him money. “
Escrow would be that third party that holds your money, holds the car. And then releases the car and the money when everybody completes the transaction is happy. The same thing happens in mortgage and real estate. So escrow is that third party. They collect the documentation from the seller. They collect the documentation from the buyer, all the inspections that are done, all the real estate documentation that’s done.
They complete all of that. Have everybody signed that documentation, then they released the fee. And if everybody is in agreement, then escrow can close. The seller would get their money. The buyer would get their keys and everybody comes home happy. I hope this short video helps clear up what escrow is and their role in a real estate transaction.
“And if everybody is in agreement, then escrow can close. The seller would get their money. The buyer would get their keys and everybody comes home happy.”
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