What is escrow in real estate: Your questions answered here

QUESTION

what is escrow in real estate

ANSWER

Escrow in real estate means that the funds and documents pertaining to a home purchase are transferred to a third party and held “in escrow” until the conditions of the sale have been fulfilled.

Conditions for the sale are determined by the buyer and seller when they sign the offer to purchase.

A lot of money changes hands during a property sale and the escrow account provides peace of mind to the buyer by ensuring that the funds are being stored somewhere safe before being released.

It also provides peace of mind to the seller, as they know the funds are available and ready to be released to them.

Of course, the first step is securing the home loan. Applying for a home loan with the assistance of a home loan comparison service such as ooba Home Loans will help you secure the best deal, as we submit your application to multiple banks and allow you to compare the packages they offer in return.