Page 10 - Homeowners Manual - Los Angeles County
P. 10

Escrow










         WHAT IS ESCROW?
         Making a very large purchase, such as a house, causes buyers, sellers and lenders to seek reassurance about
         all the security measures that are in place to protect the funds involved in the closing transaction� Transferring
         large sums of money and finalizing the details of your sale needs to be done safely and in compliance with
         the latest security and privacy standards� To help minimize risks during real estate transactions, the escrow/
         settlement process was developed to protect the buyer, seller and lender�

         An escrow account is basically a temporary pass through account held by the escrow holder� The escrow
         holder is a neutral third party that holds funds and related documents in a secure manner while the parties
         work through the details of the real estate transaction� Escrow ensures the conditions of the real estate
         transaction have been met before the property and/or money change hands�
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