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Escrow

Escrow is an arrangement in which money, documents or property are held by a neutral party under stated conditions until a transaction event occurs.

Direct answer

What does escrow mean?

Escrow is an arrangement in which money, documents or property are held by a neutral party under stated conditions until a transaction event occurs.

Exam cue: Identify who may hold the item, what condition controls release and why client funds must remain separate.

What does it look like in a question?

Example

A buyer's deposit is placed in the broker's special account pending closing or another authorized disposition.

Common exam trap

What should you not confuse it with?

Escrow is the holding arrangement. It is not automatically the same thing as a mortgage escrow account for taxes and insurance.

Article 12-AArticle 12-A is the part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingAn Article 78 proceeding is a court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA blind advertisement is a real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ComminglingCommingling is mixing client funds or property with a broker's own funds or property.ConversionConversion is the wrongful exercise of control over another person's money or property that seriously interferes with that person's rights.Net listingA net listing is a listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.

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