An escrow is an arrangement in which a disinterested third party is given the responsibility of handling the details necessary for the actual transfer of property.
An escrow company holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions. Some escrow agreements include contract collection services for periodic payments such as Promissory Notes, Real Estate Contracts, Land Contracts, Deeds of Trust, Rentals and Leases. People buying and selling real estate often use an escrow for their protection and convenience.
It is the escrow company’s job to comply with the terms, conditions, and any other instructions that are given and to help guide along the transfer of ownership.