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In this weekly Q&A video, Todd Tremonti explains the concept of an escrow account. He describes it as a bank account that holds funds in a neutral third-party arrangement during real estate transactions. In Texas, these accounts are typically managed by title companies in residential sales. Escrow accounts often hold earnest money, which is the deposit made by the buyer to demonstrate their intention to purchase. Todd briefly mentions that he has covered earnest money in another video, focusing on its role and the management of the funds held in escrow during the transaction process.