Stay Focused S2 Ep28: Real Estate Word of The Month

This week, Randal & Erik talk about a real estate term that has a lot of confusion around it: Escrow!

TRANSCRIPT:

Randal:

Welcome back to Stay Focused! Our weekly video blog! We'd like to introduce the word of the month. Which is "escrow" this
month.

Erik:

Escrow! Our word of the month for July! Not escargot. Escrow! It does sound French.

Randal:

It does indeed. I was gonna ask you how are you gonna make escrow sexy. 

Erik:

There you go. Escargot. Escrow can be fun. 

Randal:

It means different things in different states. What is escrow, Eric?

Erik:

Here in Massachusetts, escrow is typically your deposit money towards a transaction that is held in a specific account towards that transaction. Typically held by the listing brokerage sometimes by one or the other attorneys involved.

Randal:

Yep. And one thing to know about escrow, it's not a check in the drawer somewhere. It's actually your check that is deposited, cashed and held into an account. And to understand that nothing is transferred if you're the buyer writing
the deposit check. Nothing is transferred to the seller until the time the deed is conveyed at the closing of the transaction. That's something important to know because often I get the question: "Does the seller receive this right away? How do I get this back if something happens in the transaction?" That it's actually protected through your contingencies of your offer and your purchase and sale and it is held in a non-interest-bearing account.

Erik:

Yeah. The terms of escrow are always spelled out in the contract or an agreement between the two parties. Pretty straightforward. That's the word of the month, "escrow."

Randal:

Means one thing in Massachusetts, means another thing in other states.

Erik:

If you have any questions on what it means, or you still have a little confusion, or you want to hear or
know about any other real estate terms, drop us a line or give us a call.

Randal:

Or remark in the comments below! Thanks for watching today don't forget to like us on Facebook and subscribe to our YouTube Until next time Stay Tuned and Stay Focused.