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Escrow services are needed in the purchase and sale of real estate to make sure the buyer/lender funds are properly disbursed and that title to the real estate is properly transferred. The buyer, seller, and the lender give the escrow holder written instructions to follow in order to draw the documents and transfer the funds. The Escrow Officer will also clear the title of any monetary liens that the buyer didn’t agree to assume.

Residential Resale

This type of escrow specifically is for ensuring that all the requirements for the sale of a property are followed. The escrow holder makes sure that the funds get to the proper parties and that all documentation is in order and sent where it needs to go. For example, the escrow holder would send the deed from the seller to the buyer of the property.


When refinancing your mortgage, generally your current mortgage is paid off through escrow and is replaced by recording a new mortgage in the name of the new lender. Closing escrow services are used to manage the transfer of funds from your new lender to payoff the previous lender, and to disburse funds to pay taxes and any other liens that need to be cleared.

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