An escrow account plays a central, if sometimes invisible, role in nearly every real estate transaction – acting as a neutral third party that protects both buyer and seller.
During the transaction
Once you’re under contract, your earnest money deposit is held in escrow – not by the buyer or seller directly – until closing. This protects both sides: the seller knows the buyer is financially committed, and the buyer knows their deposit is safe until the deal closes or falls through under the contract’s terms.
At closing
The escrow or closing agent coordinates the exchange of funds and documents, ensuring the seller doesn’t hand over the deed until payment is confirmed, and the buyer doesn’t pay until they’re certain they’ll receive clear title.
After closing (mortgage escrow)
Many homeowners also maintain an ongoing escrow account with their mortgage servicer, which collects a portion of property taxes and homeowners insurance each month and pays those bills on the homeowner’s behalf when due.
Questions about how escrow works in your transaction? Call Dockside Realty at 850.225.9785 or email christine@docksiderealtyinc.com.