What is a real estate escrow?

@montana 

A real estate escrow is a legal arrangement where a neutral third party holds funds or documents related to a real estate transaction until specified conditions are met. It acts as a form of security for both the buyer and the seller, ensuring that all terms of the transaction are completed before the transfer of the property and funds take place. The escrow agent, often a title company or an attorney, follows the instructions agreed upon by the buyer and seller and ensures that all necessary steps are taken, such as inspections, title searches, and obtaining financing. Once all conditions are satisfied, the escrow agent disburses the funds to the seller and transfers the title to the buyer.