Definition
A neutral professional employed by an escrow company or title company who holds money, documents, and keys in trust until all conditions of a real estate transaction are satisfied, then releases them according to closing instructions.
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Escrow officers serve as impartial custodians of funds and documents during the closing process. They receive buyer earnest money deposits, hold them safely until closing, and release them according to the purchase agreement terms. During closing, escrow officers manage the wire transfers, verify all documents are properly signed, and release funds to the appropriate parties only after all conditions have been met.
Pro Tip
Ensure your earnest money is deposited into an escrow account held by a licensed escrow company or title company, not the real estate agent's personal account.
Example
The escrow officer received the buyer's $15,000 earnest money deposit and held it in an interest-bearing account for 45 days until closing. At closing, the earnest money was credited toward the buyer's down payment.