California · Chapter 33 of 59

Escrow

Role of the escrow holder, neutral third party, escrow instructions, contingency satisfaction, and closing.

25-minute read · Built for the DRE Salesperson Exam

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Role of Escrow

Escrow is a neutral THIRD PARTY that holds documents and funds until all conditions of the transaction are met. In California, escrow is a common feature of nearly all real estate transactions. The escrow holder ensures that the buyer's money is not released until title is clear and the seller's deed is not released until payment is received.

Financial Code §17000-17654

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