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    What is escrow?
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    Escrow is a common term used in the U.S. that refers to a special account set up to hold a certain amount of money deposited by the property buyer when negotiating with the seller. This account is used to ensure that both the seller and the buyer meet the terms of their agreement/contract of purchase and sale. Only after the agreement/contract is satisfied, the escrow funds will be released and disbursed to the seller and any other party that was involved in providing services during the process. For example, before the seller can pass the property title to the buyer, he/she has to be sure that the buyer will have funds to pay for the property. Until this condition is satisfied, the funds will not be released. The escrow funds are often held by a third party such as a licensed escrow company or a title company.

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