Earnest money is a deposit made by a purchaser of real estate to evidence good faith.
Escrow is an arrangement in which a third party holds funds or documents on behalf of the primary parties involved in a transaction, pending the fulfillment of specified conditions.
The act of placing funds or assets in the control of a third party, often by court order, until specific conditions are met or legal matters are resolved.
Loan closing, often simply referred to as closing, is the final step in the mortgage process where the borrower and lender finalize various agreements and settle necessary payments to transfer ownership of a property.
A reserve fund is an account set aside to cover future building maintenance expenses, mortgage obligations, and other forthcoming financial requirements. These funds can be mandated by lenders, such as escrows, to ensure timely payments for property-related costs.
In real estate, settlement, also known as closing, is the final step in executing a real estate transaction, where the buyer finalizes their mortgage, pays closing costs, and the title is transferred from the seller to the buyer.
