Functions of escrow accounts
While escrow account can hold securities, funds, money and other assets, more often this temporary deposit is used in real estate transactions. It is used when a buyer wants to perform an inspection or any other due diligence on the property while assuring that he or she has enough funds to actually buy the property. This way, the seller can be confident that if the property corresponds to the description, the buyer will be able to buy it and the seller has not wasted his time and funds. On the other hand, the buyer can be sure that his money is safe in the escrow account and will be delivered to the seller only if he is satisfied with the conditions of the house and is ready to purchase it.