Escrow Glossary

A professional evaluation of a property's market value, typically required by lenders before approving a mortgage.

The fees and expenses, aside from the property price, that buyers and sellers must pay at the close of escrow (e.g. title insurance, escrow fees, recording fees).

A contractual condition that must be met before the sale can move forward (e.g. loan approval, home inspection).

A legal document that transfers property ownership from one party to another.

Required statements from the seller regarding known issues with the property, such as structural problems or past repairs.

A buyer's deposit that shows good faith in purchasing the home. Held in escrow and applied toward the purchase price.

​A neutral third party that manages the legal and financial details of the transaction until all terms are met and the deal closes.

Written directions agreed upon by all parties that outline how the escrow process should proceed.

A legal claim against a property for unpaid debts like taxes, HOA dues, or contractor fees. Must be resolved before sale.

A report showing the current legal status of a property’s title, including liens, ownership, and easements.

The act of filing legal documents with the county to make the change in property ownership official.

A policy that protects the buyer (and sometimes lender) from potential future claims against the property’s title.

A government fee charged when a property changes ownership.