Escrow is a neutral third party (escrow company, title company, or attorney depending on state) holding funds and documents during a real estate transaction until closing conditions are met. Distinct from an escrow account for tax and insurance reserves on the servicing side. At closing the escrow officer disburses funds per the settlement statement, records the deed and mortgage or deed of trust, and issues the title insurance. Closing-side escrow ends at recordation; servicing-side escrow runs through loan life.
Closing Stage