Page 10 - Homeowners Manual - Oklahoma

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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