What Escrow Is, and Who Holds Your Money

Escrow is a simple idea wrapped in an intimidating word. A neutral third party holds the money and the documents until every condition of the deal is met, then releases both simultaneously.

Why it exists

Without it, someone has to go first. The buyer hands over the money and hopes the deed follows, or the seller signs the deed and hopes the money arrives. Escrow removes that problem: neither happens until both can happen.

What we hold

• The earnest money deposit, from contract until closing
• The buyer's closing funds
• The loan proceeds, once the lender funds
• The executed documents, until we are authorised to record

What we cannot do with it

Escrow funds sit in a segregated account. They are never mixed with operating money, never used to run the business, and never released on a verbal instruction that contradicts the written terms. That separation is a licensing requirement, not a courtesy, and it is reconciled regularly.

The moment of disbursement

Once everything is signed and the file is clear, we disburse — paying off the seller's mortgage, paying the brokerages, paying the county for recording, sending the seller their proceeds. Then we record.

Where the actual risk is

Not in the escrow account. In the instructions telling you where to send your money in the first place. Criminals intercept email near closing and send convincing revised wiring instructions. Escrow protects you from a counterparty who does not perform — it cannot recover funds you sent to a fraudster. Call before you wire, every time.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.