What defines an escrow closing?

An escrow closing is primarily defined by the involvement of a neutral third party who manages the process of the transaction. This third party, typically an escrow agent or company, holds the funds and documents related to the sale until all conditions of the sale are met by the respective parties. By acting as an intermediary, the escrow agent ensures that the transaction remains impartial and that all details are adhered to according to the terms of the purchase agreement.

The presence of this neutral party is key to safeguarding the interests of both the buyer and the seller, thereby creating a secure and trustworthy environment for the completion of the real estate transaction. The escrow agent is responsible for ensuring that all necessary documentation is in place and that the transfer of ownership happens smoothly once all conditions are fulfilled.