Escrow
An arrangement where a neutral third party holds money and documents until every condition of the sale is met. Some states use escrow companies to close; others use title companies or attorneys.
Also called: in escrow, escrow period, under contract
Related terms
A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.
The final step of a sale, when documents are signed, money changes hands, the deed is recorded and the buyer gets ownership. In some states everyone signs at a table; in others signing and funding happen separately.
The legal right to own and use a property. Title is not a single document; it is shown by the deed and public records, and must be clear for a sale to close smoothly.
The neutral party who holds funds and documents, follows the written instructions of buyer and seller, and pays everyone out at closing. Depending on the state, this is an escrow company, title company or attorney.
An account the loan servicer keeps to pay your property taxes and homeowners insurance, funded by part of each monthly payment. It is reviewed yearly, so the payment can rise or fall with tax and insurance bills.