What is escrow?

An escrow is a contractual arrangement provided by a neutral, third-party called the Escrow Agent (often a Title Company) who is trusted to hold money, documents, keys or other items, until the transaction between the buyer and seller is complete. In Texas, Escrow  is usually established pursuant to an Earnest Money Contract and is typically done by check or wire transfer to the escrow agent. The escrow agent will not release funds or other escrowed items until terms of the Earnest Money Contract have been fulfilled this makes sure that neither party walks away without getting what they bargained for.

The Escrow Officer is an employee of the Escrow Agent and the Escrow Officer  performs tasks that include communicating with all parties involved with the real estate transaction, preparing settlements statements according to the terms of the Earnest Money Contract, preparing title documents, causing legal documents to be prepared, obtaining signatures, recording legal documents and disbursing funds and any other escrowed items.