What does it mean when a house is in "escrow"?Is there a difference between a house being in escrow,

Question

and a house that is "sale pending"?Just wondering,any suggestions,ideas?

Answer 1

Escrow is a legal arrangement in which an asset is deposited into safekeeping under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition. Once the condition has been met, the escrow agent will deliver the asset.

http://en.wikipedia.org/wiki/Escrow

Answer 2

It means that there is a contract and there is money waiting in "escrow," which really just means in an account until the buyer's mortgage is approved and the deal goes through.

Answer 3

It's the same thing.  Different states use different terminology.  It's quite confusing the first time you hear the new terms after you've moved to a new state!

Answer 4

I believe escrow is further along in the process. Escrow is where the money is held basically. Sale pending is after the initial contract has been signed and they could be waiting for financing to be approved etc..from wiki Closing in escrow usually occurs in the western half of the US states. A title company (rather than a lawyer) or other trusted party holds the money and the signed deed, and arranges for the transfer. This is primarily so that the seller can give up ownership of the property, and the buyer can hand over the payment, without both parties having to be present at the same time. Escrow ensures an orderly transaction, or if something goes wrong, an orderly termination of the agreement

Answer 5

No difference. "In escrow" means that an escrow account, mandated by law, has been opened during a sales transaction, where the money the sellers receive from the buyers must be deposited into instead of handed directly to the sellers. Once the sellers find a buyer they agree to sell the house to, the escrow account gets opened. Once the buyers deposit the money into the escrow account and the money is delivered to the sellers, the escrow account gets closed and the house transferred to the new owners. If you see a sales sign on a house that says "in escrow" or "sale pending" it means buyers have already been found and an escrow account opened. Some sellers will continue accepting offers in case the buyers loan doesn't go through and they can't complete the sales transaction. Being in escrow is part of the sales transaction. Usually the buyer will be given 24-72 hours to deposit their initial down payment into the escrow account as soon as the sellers accept their offer. Failing to do so will void the contract and the sellers can then accept an offer from another buyer. Without a neutral 3rd party escrow account, a seller can commit fraud by accepting offers from multiple parties, having them all deposit money into his personal account then skipping town  as used to happen before the laws were passed to institute escrow accounts, or if there was an issue such as severe damage and misrepresentation of the home, the seller would keep the buyers money without refunding before the sales transaction was complete, among other issues that could arise wtihout a 3rd party making sure terms are met before the sellers receive the money for the sales transaction.