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Summary: Escrow companies are a neutral party that holds money until a real estate transaction is complete. Discover what exactly escrow is in the world of real estate and stay protected with tips and advice from an experienced businessman in this free video.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"This is financial adviser Patrick Munro talking about how does escrow work. Escrow is a term used by the legal real estate planning industry which means when you find a piece of real estate, be it a piece of land, a home, a commercial building that you want to buy, you put down a good faith deposit with the person that's selling. The buyer puts down that money and usually it's held in trust or escrow with an attorney. That down payment is placed there for a period of time until a details come to fruition and the ownership passes from the purchaser, from the person who has the piece of real estate for sale, to the person that's going to be buying the real estate. This deposit is called escrow funds. If all subject dues are removed and the deal collapses because the buyer does not move forward, the escrow money can be given as damages to the purchaser. This is Patrick Munroe talking about the importance of escrow funds."
eHow Article: Real Estate Escrow Advice
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