The Real Estate Escrow Process Glossary Of Real Estate Terms San Fernando Valley Community Info. Once the buyer and seller have agreed on price and terms for the sale of a piece of real estate, the escrow process begins.
Lets start with the definition of a real estate escrow.
Escrow is the deposit of documents and funds with a neutral third party with specific instructions as to how they should be disbursed. Escrow acts as the clearinghouse for the exchange and distribution of those documents and funds in connection with the transfer or financing of real estate. The services of a qualified escrow agent, assures all interested parties that the rules and regulations governing real property transfers will be strictly observed by a neutral third party with an objective interest in completing the transaction. I think the easiest way to understand the process is to delineate the obligations of each party in the real estate transaction. The seller must provide the buyer with detailed disclosures that will reveal to the buyer any problems or adverse conditions that the seller is aware of.