"escrow"

Okay okay, I have watched those real estate reality shows. Last week my wife and I were watching “Selling the OC” and this one term came up…”escrow.”

DEFINITION
What does “escrow” mean?

• An escrow in real estate is like a safety deposit box where money and important papers are kept safe while buying a house. When someone buys a house, they give their money to a neutral third party called an "escrow agent." This agent holds onto the money and the papers that say who owns the house. They make sure everything is in order before they give the money to the seller and the house ownership papers to the buyer. This helps everyone feel secure because the buyer and seller know that no one will get cheated. Once everything checks out and everyone agrees, the escrow agent finishes the deal by giving the money and papers to the right people.

PRACTICAL ADVICE
Look up terms you don’t know

• If you’re in a financial conversation, and you hear a term you don’t know like “escrow.” Just ask: what’s that?

• Don’t try to look like you know what they’re talking about, be a STUDENT, not a fake.

• Or you can just take note of the word, and look it up later too. But don’t just let these terms and phrases go.

OUR COMMUNITY
What are your questions? Or share a win!

• Reply to this email with any personal finance question you have, or share with me any wins in your life! (I’ll respond to your questions anonymously in future emails)