What is Escrow and How Does it Work?

Today, let’s start with the basics: What exactly is escrow?

An escrow is essentially money or property that is held in the custody of a neutral third party until specific conditions are met. This third party, the escrow holder, ensures that all the terms of a transaction, such as a real estate sale, are fulfilled before funds and property change hands.

How do you open escrow? Once you have a signed purchase agreement for a property, your real estate agent will typically deposit your initial down payment into your escrow account. After this, your escrow officer at Diamond Valley Escrow will prepare and send you the necessary escrow instructions.

You’ll receive written evidence of your initial deposit, and your funds will be held in a separate escrow account. We then begin the process, which involves ordering necessary documents and coordinating with other parties involved in the transaction.

Understanding the escrow process is key to a smooth transaction. We’re here to simplify, protect, and deliver for you!