What is Escrow?
How Does Escrow Work?
For example, let's assume a situation where someone is purchasing a home. Instead of immediately giving the seller the purchase amount, the buyer may deposit the money into an escrow account and attach certain stipulations to the purchase agreement. These stipulations might include performing necessary repairs to the property, catching up on property taxes, or passing an inspection.
In turn, the escrow agent will not give the seller the money until they meet those requirements, and to protect the seller, the agent will not return the money to the buyer until the seller has failed to meet their obligations.
Why Does Escrow Matter?
Escrow protects both the buyer and the seller in a transaction by ensuring that both parties perform according to the provisions of the deal. Escrow fees are common costs associated with buying and selling houses and other real estate.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
I have a friend who thought it would be a great idea to buy sports memorabilia as an investment. The stock market...Read More →