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Other names for the document:
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What is the purpose of escrow?
Escrow protects all of the relevant parties in a real estate transaction, including the seller, the home buyer, and the lender, by ensuring that no escrow funds from your lender and other property change hands until all of the conditions in the agreement have been met.
How does Escrow work?
Each month, the lender deposits the escrow portion of your mortgage payment into the account and pays your insurance premiums and real estate taxes when they are due. Your lender may require an “escrow cushion,” as allowed by state law, to cover unanticipated costs, such as a tax increase.
Is escrow legally binding?
It's a binding agreement between the party who makes the promise and the one to whom the promise is made. Written documents are held in escrow until the underlying agreement is accomplished. Any written document executed in accordance with all the necessary legal formalities may be put into escrow.
Is escrow the same as closing?
Escrow is closed. However, you could close on your mortgage and take possession of the title, deed and keys from the escrow agent on a completely separate day. This is your closing date and the seller doesn't have to be present.