You need to know – Who are escrow funds held in trust for?

YouNeedToKnowWeb500Escrow funds are deposited with a third party (such as a real estate broker or attorney or title company) in trust for others

When a deposit is made with an offer to purchase real estate, the escrow funds are held in trust for the buyer, pending acceptance or rejection of the offer to purchase

If the offer to purchase is accepted by the seller and all contingencies have been cleared, the deposit funds typically become held in trust for the seller, since the deposit formed a part of the binding contract to purchase the real estate