Escrow Terms & Phrases

A neutral arrangement in which a third party holds documents, funds, or other items until the conditions of a real estate transaction are met.

The neutral party responsible for holding funds and documents and carrying out the written instructions of the parties.

The professional who coordinates closing documents, funds, and communication among everyone involved.

The person who prepares the settlement statement, conducts the signing, and balances the file.

A separate, non-commingled account where transaction funds are held; it is not the title company's operating money.

The regulated account a title agency uses to hold client funds, subject to audit and state rules.

A good-faith deposit made by the buyer after an offer is accepted, held in escrow and applied at closing according to the purchase agreement.

The total amount the buyer must bring to closing, after the loan, credits, and deposits are applied.

Money that has actually cleared and is available to disburse; states set their own good-funds rules, which is why a personal check may not be accepted at the table.

The bank-to-bank method used for most closing funds; instructions must always be verified by phone.

The money the lender sends to escrow to fund the mortgage.

The written directions that tell the escrow agent exactly what must happen before funds can be released.

A condition in the contract that must be satisfied before the deal can close, such as financing, inspection, or appraisal.

The split of shared expenses like property taxes, HOA dues, or rent between buyer and seller as of the closing date.

The lender's written figure for what it takes to satisfy an existing mortgage as of a specific date.

The document showing what the title insurer will insure and what must be cleared first.

The work of resolving liens, judgments, or record defects so the title can close.

The itemised accounting of every dollar in and out of the transaction for each party.

The federal form given to the borrower showing the final loan terms and closing costs.

The release of funds to the seller, the payoff lender, the agents, and everyone else owed at closing.

The moment the lender releases loan money and the transaction can be completed.

The filing of the deed and mortgage in the county land records, which makes the transfer public.

The point at which all conditions are met, funds are disbursed, and the escrow is complete.