Why Are Escrow Funds Held Longer After Closing? Have you ever wondered why escrow funds are held longer after closing a real estate transaction? In this informative video, we’ll explain the reasons behind this common occurrence and what it means for buyers and sellers. We’ll cover the role of escrow agents in verifying that all paperwork is properly signed, recorded, and that any liens or taxes are paid. You’ll learn why the process of confirming wire instructions and preventing wire fraud adds extra time to the release of funds. Additionally, we’ll discuss how ongoing repairs, inspections, or disputes about the property title can extend the escrow hold period. We’ll also explain how legal and regulatory rules vary by state to ensure transparency and fairness in the disbursement of funds. Typically, escrow funds are held for about thirty to sixty days, with most releases happening within a few business days after closing. Understanding these factors helps manage expectations and highlights the importance of escrow in protecting both buyers and sellers during property transfers. Whether you’re buying or selling real estate, knowing why escrow funds may stay in the account longer provides clarity on the process and safeguards involved.
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