Let's chat about some Real Estate terms. I will post a new term that you should be familiar with when purchasing Real Estate, a lot of these are good terms to know when selling as well! Escrow amount will be dependent on each individual listing and can be a percentage of listing price although there is some flexibility. Typically, the Title company, being a 3rd party with no real interest in the transaction, will hold the escrow, at least that's how it's done in Colorado. Upon closing of the transaction, escrow will be credited to the buyer as part of their closing costs. There are different scenarios where escrow can be returned to the buyer if the transaction doesn't make it to closing, your real estate agent will discuss these with you. If a buyer doesn't fulfil their promise of closing and doesn't get out of the contract at a determined point prelisted in the contract, the seller will get to retain the escrow fee. There is a lot of grey area here, your real estate agent on either side will explain all of this to you. -Raven
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