Escrow (at closing)

The full definition

Funds or documents held by a neutral party until stated conditions are satisfied. At a New York closing it usually means a holdback from proceeds under a written escrow agreement.

Which related terms should you know?

These are the terms that come up alongside escrow (at closing) in the same file.

Open permit

A DOB permit filed for work that was never signed off. Closing it usually means a licensed professional filing for inspection or formally withdrawing the job.

Violation (cited against the premises)

An agency record that a condition at a property does not comply with a code or rule. It attaches to the premises and follows the property through a sale.

Certificate of Correction

The filing that certifies to a City agency that a cited condition has been corrected. Acceptance by the agency, not the repair itself, is what closes the violation in the record.

Closing statement

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

Survival clause

The contract provision that carries specified representations past the closing. Without it, the doctrine of merger extinguishes most representations when the deed is delivered.

What else should you read before closing?