Closings glossary

Escrow (at closing)

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.

Start Free Case Review Call 347-392-6356

What is an escrow at a closing?

Quick Answer

An escrow at closing is money held back from the seller's proceeds and released only when a defined condition is met: a violation cured, a permit signed off, a repair finished or a tax bill resolved. It is the standard tool for closing on time despite one unresolved item.

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.

Where does escrow (at closing) come up in a New York City closing?

A Queens seller leaves $7,500 in escrow for an open plumbing permit, released when the sign-off is filed and the record shows the permit closed.

What else should you read before closing?

In the glossary

Questions this raises

What happens after the closing table?Recording, recorded copies, the final policy, satisfactions and post-closing lender conditions. The New York closing tail and the documents to keep...

Title issues

Open permitAn open DOB permit is work the City still shows as unfinished. It rarely kills a NYC deal outright, but it moves the date and it follows the buyer.

Elsewhere on this site

Have a closing coming up?

Tell us about the transaction. An attorney reads every intake form and responds the same business day.

Tell us about your transaction Call 347-392-6356

Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.