2006-12-19 05:05:43 · 5 answers · asked by Eric B 1 in Business & Finance ➔ Renting & Real Estate
Escrow literally means to write. Generally what happens is the escrow company (or individual) is a nuetral third party between two or more parties. The escrow officer recieves written instructions including what obligations and conditions must be met in order to fulfill a contract between the other parties. If it is a real estate or loan transaction, this could also include notarizing of documents and disbursement of funds at the close of escrow.
2006-12-19 05:21:24 · answer #1 · answered by Natsif Alphamith 2 · 1⤊ 0⤋
Escrow is the process where money and /or other valuable property is turned over to a disinterested party to be paid out when certain conditions established by the other parties are met.
When you buy a home, the seller deposits the deed with the escrow agent. The buyer deposits the money. The both issue instructions to the escrow agent on what is to be done -- repairs to the property, funding of the loan, etc. When all these conditions are met, the escrow agent parcels out the money and documents to the appropriate parties.
Once you've bought the home, your mortgage company may require monthly impounds for taxes and insurance to be held on your behalf to be paid to the taxing authorities and insurance company. This is to protect the lender's interest in the home. These impounds are sometimes referred to as "escrow." Some would argue that that is a misnomer as the mortgage lender does have an interest in the transaction but it's common and accepted use in many areas.
You can do pretty much anything in escrow as long as it isn't against the law.
2006-12-19 13:29:43 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Escrow is kind of like a part of your home loan, whereas your taxes and junk are included in your monthly mortgage payment so you don't have to worry about saving up to pay them separately at the end of the year.
As for what you can and cannot do, I guess I don't understand your question.
2006-12-19 13:17:11 · answer #3 · answered by shdowops 3 · 0⤊ 0⤋
depends on what is in escrow and for what purpose.
2006-12-19 13:12:16 · answer #4 · answered by Robert 2 · 0⤊ 0⤋
If you are in CA that is the time between signing the purchase contract and the title transfer. It means different things in different places and to different parties.
Where you are means a lot.
2006-12-19 15:27:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋