The term Escrow refers to a neutral third party who holds funds pending (sales proceeds for the purchase) satisfactory evidence that the Title Deed / Membership Certificate, has been successfully transferred free from encumbrance. An Escrow Account is a third party account which guarantees both the seller and buyer some level of security during the sales procedure of closing / completing.
The monies which are held in Escrow can be drawn upon to pay any costs which may be called upon to close / complete the transfer procedure. Also the seller can be paid directly from the Escrow account upon closing / completion in which ever manner agreed upon when the contract was signed originally. Timeshare Escrow companies also liaise in most cases all necessary paperwork to complete the transaction.
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