What is Escrow

What is Escrow?

Escrow is the process for providing a fair and equitable transfer of property from one person to another. When a buyer and a seller signs  a Purchase and Sales Agreement, escrow is opened. The sales contract, along with other important documents, serves a instructions for the escrow company. The escrow agent handling your contract acts as a neutral third party to the transaction. Escrow services may be requested to service the following key areas:

  • Disbursement of Funds
  • Coordinating documents and funds
  • Informing all parties about escrow process
  • Work hand-in-hand with the lender
  • Coordinating the closing documents
  • Adjust and prorate taxes, rents, insurance, etc..
  • Recording of deeds and loan documents

Can anything stop the process of escrow?

Unfortunately the answer is yes. Throughout the process there are plenty of hurdles that we might need to overcome. Do not worry too much though! Seasoned agents like myself and the professionals such as lenders, title and escrow companies that I have been working with over the past decades are highly experienced and always know just what to do. In most of the cases everything works out just fine but I do want you to understand however, all the common escrow stoppers that we usually see.

I.Termite Inspection

  • Inspection was done for wrong property
  • Addresses are incorrect
  • No inspection has been received

II.Fire Insurance

  • Buyer used Out of State Insurance
  • Coverage is for wrong amount
  • Wrong address, names etc..

III. Lender

  • Interest rates go up/buyer not notified
  • Lender has called for additional conditions


  • Buyer does not have additional funds needed to close
  • Husband/wife comes to signing without spouse
  • Judgments arise during escrow period

V. Seller

  • Releases are not yet in escrow
  • Did not notify agent about homeowner’s dues on property
  • Judgments arise during escrow period
There are other factors that can slow down the escrow process as well but you should not be too concerned to understand everything since it is my job to make sure that all goes according to plan.



Once the escrow office records a new deed in the buyer’s name, the seller is paid for the home and all other funds are disbursed, can we say escrow is closed and the deal is sealed. If you have any questions about the escrow and closing process just let me know. I am free to answer all your questions and concerns.