An escrow is a deposit of funds, a deed or other document by one party for the delivery to another party upon completion of a particular condition or event.

Escrow is held in a trust account with a third-party escrow holder like Home Builders Escrow. It is the primary responsibility of an escrow holder to ensure that all of the necessary instructions in the real estate agreement are executed.

The duties of an escrow holder include:

• Following the instructions given by the lender and other parties involved with the transaction in a timely manner;
• Handling the funds and/or documents in accordance with instructions;
• Paying all bills as authorized;
• Clearing title;
• Responding to authorized requests from the principals;
• Closing the escrow when all terms and conditions have been met; and
• Distributing the funds in accordance with instructions and providing accurate accounting for the HUD Closing or Settlement Statement.