What is Escrow?
An escrow is the method of closing in which a neutral/unbiased third party (who does not represent anyone in the transaction) is authorized to act as escrow agent and coordinate the closing activities. The Purchase and Sale Agreement serves as the primary escrow instructions for both the seller and the buyer. It should contain all the agreements of the parties. The escrow agent holds monies and legal documents on behalf of the buyer and seller and handles them according to their mutually agreed upon instructions. Escrow cannot be unilaterally revoked. In the event of a disagreement the escrow can only be amended, changed or revoked by mutual agreement of the parties to the escrow. The escrow agent is not authorized to comply with any instructions or demands of any third person who is not a party to the escrow.