What Is Escrow? A Beginner’s Guide to Escrow Services in Real Estate

Sankalp Title11 Jun, 2025Real Estate

If you’re buying or selling a home, you’ve probably heard the term escrow—but what does it actually mean, and why is it so important? Escrow is a critical part of real estate transactions, acting as a neutral third party that holds funds and documents until all terms of the agreement are met. It protects both buyers and sellers by ensuring that money and property only change hands when everyone has fulfilled their obligations. In this beginner-friendly guide, we explain what escrow is, how it works, and why it’s a key safeguard in real estate deals. You’ll learn about the escrow process from start to finish, the role of the escrow officer, and what to expect during each stage of a transaction.