Escrow: how it works and why it offers greater guarantees
A widely used instrument in real estate sales, the escrow deposit is a sum of money the buyer pays to guarantee the purchase offer presented and, more importantly, their intention to successfully complete the transaction. The amount is deposited with a neutral third party, such as a notary or real estate agency; it is not released to the seller until the offer is accepted or the preliminary contract is signed. Upon signing, it becomes a confirmatory deposit.