Question

An escrow account is:A. always under the jurisdiction of the brokerB. beyond the control of either party to the escrowC. always under the control of the title companyD. under the control of the seller

Answer 1

Answer: B - beyond the control of either party to the escrow

Explanation: An Escrow account is a legal term used where funds are held in trust whilst two or more parties complete a transaction.

An Escrow is a trusted third party that will be in custody of the funds during the cause of the transaction and will be the one to pay the merchant   after all the escrow agreement are fulfilled.

Escrow account reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied. It apply mainly to real estate transactions.