What is Escrow?
Escrow is a neutral third-party arrangement where funds and documents are held securely until all conditions of the sale have been met. Think of escrow as a trusted intermediary — they hold your earnest money deposit, coordinate the transfer of funds at closing, and ensure all conditions are satisfied before anyone receives anything.
Simply put: Escrow exists so that neither party has to trust the other with money or property until the deal is fully complete and everyone is protected.
The Escrow Process
Once your offer is accepted, escrow is opened with a title or escrow company. Your earnest money deposit is submitted.
Your deposit (typically 1–3% of purchase price) is held in escrow — showing the seller you are serious and financially committed.
Inspection, appraisal, financing, and other contingencies are completed during the escrow period.
The escrow company prepares all closing documents, coordinates with the lender, and schedules the signing.
You wire your closing funds to escrow. The lender sends the loan proceeds. Everything is verified and balanced.
The deed is recorded, funds are disbursed to the seller, and you receive the keys to your new home.
Earnest Money — What You Need to Know
- Typically 1–3% of the purchase price in South Florida and Park City luxury transactions
- Submitted within 3 days of offer acceptance
- Applied toward your down payment or closing costs at closing
- Refundable during inspection and financing contingency periods if you cancel properly
- May be forfeited if you cancel without a valid contingency — I protect you by ensuring proper contingencies are always in place
Mimi's Protection: My legal background means I ensure every contingency in your contract is properly worded to protect your earnest money deposit in all scenarios.