What is an Escrow ?


Escrow is a service which provides a public with a means of protection in the handling of funds and/ or documents. Escrow enables the buyer and seller to transact business with each other through a neutral party, thereby minimizing their risk. In the escrow, all parties involved give their instructions to this neutral intermediary, the “escrow holder” whose duty it is to assure that no funds or property will change hands until all instructions have been carried to completion.


  • Escrow serves as a neutral depository or disinterested third party for money and documents.
  • Escrow holds a fiduciary role and MUST act completely impartial towards everyone involved in the transaction. By holding all money and documents, escrow acts as a form of consumer protection.
  • Escrow provides clear, concise accounting of all funds involved in the transfer process.
  • Escrow assures that all conditions will be met before the deed is recorded and money exchanged.
  • Throughout the transaction, escrow is responsible for preparing and arranging for the safe delivery of all funds and documents to their proper recipient by the close of the escrow.

Buyer and seller in a sale are considered as principals in an escrow.

Shirin Rezania Ramos | 858-345-0685 | www.DelMarValley.com | Lic. 02033796 | Compass

Next Post

What are typical closing costs for a Home Buyer in San Diego?

Wed Nov 6 , 2019
There are two types of costs or expenses in an escrow: recurring costs and non-recurring costs. RECURRING COSTS Costs which the party  pays at closing but will continue to occur […]

Shirin Rezania Ramos, Realtor®