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Escrow places money or documents with a third party to

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be held until specified conditions are met.

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In a real estate transaction, the escrow holder follows the

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applicable instructions and requirements.

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Watch the funds enter custody, remain held while conditions are

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checked, and move only when release is authorized.

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Custody does not make the funds the holder's own money.

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The word also appears in mortgage servicing.

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A mortgage escrow account can collect amounts for property taxes

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and insurance.

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That ongoing account is a different use from holding transaction

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funds pending closing.

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Quick check:

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may an escrow holder treat the buyer's deposit as personal

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spending money?

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No.

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The holder must follow the applicable instructions and rules.