What is Escrow?
In California, once a buyer and seller commit to performing a real-estate transaction, the process goes through escrow.
Escrow is the process where the committed funds are held by a neutral third party (the escrow company) while all other required activities agreed on by both parties are completed. Such activities may include inspections, repairs, the search for and clearing of any liens (third-party claims) on the property, and other related actions.
Once all activities have been completed per the instructions, including any cash disbursements, the escrow is finished, or closes, and the transaction is completed.
For more information, visit the Escrow Institute of California where you can find detailed information regarding the escrow process.