🔍 What Is Escrow?

In real estate, escrow is a neutral third-party account that temporarily holds funds, documents, or property until specific contract conditions are satisfied.

Think of it as a secure holding area — nothing changes hands until both sides complete their responsibilities. For example, your earnest money deposit is placed in escrow and stays protected there until closing.

⚙️ How Does Escrow Work?

1. Offer Accepted: The buyer and seller agree on the terms of the sale.
2. Escrow Opens: The buyer deposits the earnest money with a licensed escrow or title company.
3. Conditions Are Met: Inspections, appraisal, and loan approval are completed. The escrow officer confirms all required funds and documents.
4. Closing Day: Funds go to the seller, the deed is recorded, and the buyer gets the keys.

Bottom line: escrow is the bridge of trust from accepted offer to closing.

💡 Why Is Escrow Important?

• Protects both buyer and seller: Buyer funds are safe; sellers know funds are verified.
• Ensures contractual compliance: No closing until all conditions are fulfilled.
• Manages funds securely: Payments and fees flow through controlled escrow accounts.
• Simplifies the closing process: A neutral pro organizes documents and disbursements for a smooth finish.

🧾 Escrow After Closing

Many lenders keep an escrow account for property taxes and homeowners insurance, collecting a portion with each mortgage payment and paying those bills on time.

🏠 Final Thoughts

Escrow isn’t just another step — it’s the safeguard that brings fairness, accountability, and peace of mind to your home purchase or sale.

If you’re buying or selling in the Coachella Valley, our team at The Fredy Rodriguez Real Estate Group will guide you through every step — including escrow.