Seller Gets Money

• Purchase agreements often require funds to be held in escrow until the house is sold. After the house sells, the escrow account provider pays the necessary funds out of the escrow account to clear the transfer of deed. The buyer then gets the title to the house and the seller gets any money left over after all transfer fees and taxes have been paid.
  
  

Time Frame

• There is no set time frame in which the funds must be transferred from escrow to the seller. The time frame depends on the conditions set in the purchase agreement. Most escrow agreements require funds to be held for 45 to 60 days; however, an agreement can require a longer window or shorter window if the buyer and seller agree to it.
  
  

Escrow Officer

• An escrow officer handles the transactions once money is placed into escrow. The officer is a neutral third party, not related to either the buyer or the seller. The purchase agreement provides instructions for how the money in escrow is to be used. The escrow officer follows the instructions -- he doesn't make any independent decisions regarding the money in escrow.
  
  

Deposits After Sale

• Even after a sale, homeowners will probably be dealing with escrow accounts if they have a mortgage. Many homeowners deposit money into escrow on a regular basis. Escrow funds are then used to pay property taxes and mortgage insurance premiums. The homeowner can't withdraw funds from escrow once she places them there; she must leave them in escrow and allow the escrow account to pay the taxes and mortgage insurance premiums.