When in escrow, a real estate transaction involves a neutral third party holding crucial funds and documents. This occurs after signing a purchase agreement and opening an escrow account, which securely holds the buyer's earnest money deposit. The process marks the official beginning of closing, ensuring that both parties complete necessary inspections, appraisals, and approvals. The escrow company manages timelines, documents, and communication, making the typically 30 to 45-day period critical for due diligence and coordination.
In real estate, "in escrow" refers to a phase when a neutral third party temporarily holds important funds and documents while the buyer and seller finalize the sale.
When a home is in escrow, it means the buyer and seller have signed a purchase agreement, and an escrow account has been opened to securely hold the buyer's earnest money deposit.
An escrow account holds the earnest money deposit along with important documents like the purchase contract, loan paperwork, and the deed during the closing process.
The escrow process typically takes between 30 and 45 days, depending on the contract terms and how quickly all parties fulfill their obligations.
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