Escrow Explained

Alright, imagine this:

You and a friend agree to trade something valuable—let’s say you’re buying a cool collectible from them for $100. But neither of you completely trusts the other to follow through right away. You don’t want to give them $100 and then risk them disappearing without giving you the collectible, and they don’t want to give you the collectible first without getting paid.

That’s where a trusted middleman comes in. This person holds onto both things—the collectible and your $100—until both sides do what they promised. Once everything checks out, the middleman hands over the collectible to you and gives your $100 to your friend. Everyone's happy, and no one got ripped off.

In real estate, escrow works the same way but with bigger stuff: like money and property. An escrow company (the trusted middleman) holds onto the buyer’s payment and important documents, like the deed to the house or land. They don’t hand over the money or the property until both the buyer and seller have done everything they agreed to, like signing contracts and meeting any special conditions (like inspections or repairs).

Once everything is good to go, the escrow company makes sure the buyer gets the property and the seller gets the money. It’s all about making the deal safe and fair for everyone involved.