The escrow process is a framework for conducting a homebuying transaction that protects the interests of each party by involving a neutral, independent escrow agent that collects all funds, examines all documents, and verifies that each party has upheld their end of the bargain before releasing title and funds to the buyer and seller, respectively. The escrow process is the primary method of conducting homebuying transactions in many areas of the United States, and because a third party serves as an intermediary, the closing of the transaction does not have to occur with buyer and seller at the same table signing documents in sequence. Each party can perform their part under the ausipices of the escrow agent, and when all requirements are met, the escrow agent will consummate the transaction. In areas of the United States that do not use an escrow process, an attorney will often perform this role.
States that use an escrow process are often called escrow states.
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