In US real estate, escrow refers to a neutral third party (escrow agent, title company, or attorney) that holds funds and documents during a transaction until all conditions are satisfied. When a buyer makes an offer, they deposit 'earnest money' (typically 10% of the purchase price in NYC) into an escrow account. The escrow agent releases funds only when both parties have fulfilled their contractual obligations. In New York, real estate attorneys typically manage the escrow process, while in many other states, title companies serve this function.
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