What is escrow?
In real estate, we say the home is "in escrow". Well, Where IS that exactly? Where does the home go? Take the 101 and get off at Hollywood Blvd... No.
Let's say you are buying a house, and the seller just accepted your offer. Congratulations! You are "under contract".
Then, once the paperwork is "fully executed", we can "open escrow" with an escrow company, managed by an escrow officer.
Their job is to make sure everybody does exactly what they said they were going to do in the contract. This is also where the Buyer and Lender deposit their down payment and loan amount before closing. Then after the home closes, they write a check to the Seller.
The escrow company is a third party, and don't have loyalty to either side. In fact, that's exactly why we hire them... to be fair and unbiased.
They play an extremely important role in real estate because when you have a million dollars on the line, you want to make sure it's in safe hands...