What is an "escrow" account?
If a real estate firm holds money for others, such monies must be held in a separate escrow account in the name by which the firm is licensed. The accounts, checks, and bank statements must be labeled "escrow", and must be in a federally insured depository in Virginia. The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the firm.

There are very strict regulations for the cirumstances under which an escrow agent can release money from escrow.

Posted By: Tim Parker on Friday, February 12, 2010