‘Escrow’ has at least two meanings in real estate
Q: I used to live in California where the word “escrow” referred to the closing of a real estate sale. For example, we said, “We’re in escrow for the sale of our house.” But then I moved to Florida where the term “escrow” seems to have an entirely different meaning. Here, it refers to the mortgage lender requiring the borrower to deposit a stated amount each month into escrow for payment of the property taxes and insurance bills when they come due. Which is the correct use of the word “escrow”?
A: As you discovered, there are at least two real estate meanings for the term “escrow.” The word itself refers to putting something of value, usually money, into the care of a trusted third party.