Escrow is a legal arrangement where a neutral third party holds and regulates funds or assets during a transaction between two parties.

The buyer and seller agree to the terms of the transaction.

The buyer deposits the funds into the escrow account.

The seller transfers the assets or goods to the buyer.

The escrow agent ensures that all conditions are met before releasing funds or assets to the respective parties.

The escrow agent is a neutral third party, often a title company, attorney, or a specialized escrow service, responsible for facilitating the transaction.

Real estate transactions, online purchases, business acquisitions, and other high-value transactions often involve an escrow process.

The duration varies depending on the complexity of the transaction and the parties involved. It can range from a few days to several weeks.

Escrow fees are typically split between the buyer and seller. The costs can include the escrow agent’s fee, document preparation, and other administrative charges.

The escrow agreement will outline the consequences of default. Typically, the escrow agent will not release funds or assets until all conditions are met, or there may be penalties for non-compliance.

Any changes to the escrow agreement usually require mutual consent from both parties and approval from the escrow agent.

While not mandatory for all transactions, escrow is recommended for high-value and complex transactions to provide a secure and impartial mechanism for completing the deal.

It’s crucial to select a reputable and licensed escrow agent. Consider recommendations, reviews, and their experience in handling transactions similar to yours.