What is an escrow process?

[WhiteRussian]

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #606 "Real Life: Real Estate (1)", question 1

The house I am buying is still in the ......... process. It will take about two weeks to complete that process and then I will own my own house and be able to take possession of it.

(a) government
(b) bureaucrat
(c) crow
(d) escrow

English Language Proficiency Tests, Advanced Level

ESL/EFL Test #606 "Real Life: Real Estate (1)", answer 1

The house I am buying is still in the escrow process. It will take about two weeks to complete that process and then I will own my own house and be able to take possession of it.

Correct answer: (d) escrow
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What is an escrow process? After that the house is mine, right?

[Linda]

Hi,
This is the meaning from this website real-estate-law.freeadvice.com/commercial_real_estate/escrow.htm
: "It’s simply an arrangement where a third party – such as a title insurance company or a lawyer – holds money or documents and distributes them according to instructions from both parties." "In a commercial real estate transaction, for example, the escrow agent may obtain funds and documents from the buyer, the seller, and the commercial lender. When everything is ready, the escrow agents make sure the money and papers wind up in the right hands. Escrow agents make transactions flow smoothly and reliably."

So, yes you are right. After the escrow process is complete, the house is yours.
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[Kitosdad]

A similar scheme is used by sellers on EBay, where the buyer send the purchase price to Escrow, rather than to the seller.

The seller send the goods to the " buyer ". When the " buyer " informs EBay escrow that they are happy with the goods, then the seller receives the payment .

This form of transaction is usually only adopted for items of considerable value.
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