When a buyer and seller agree to a real estate transaction, a real estate escrow account is opened. The buyer usually places a deposit into the real estate escrow account. An escrow officer oversees the account, and follows any instructions in writing that are given by both parties to the transaction. All of the information related to the sale, including the terms, contingencies, the amount of money that has been paid so far, and the instructions for further payments become part of the real estate escrow instructions. The formalities associated with the real estate escrow transaction must be completed before any of the money in the account, or any documents, can be released.
You may also like to read: