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In this weekly Q&A video, Todd Tremonti from Market Experts Realty explains the concept of an escrow account. He notes that "escrow" is frequently referenced during purchase, sale, or investment transactions. An escrow account is a bank account managed by a neutral third party, often a title company in Texas, where funds are held during a real estate transaction. Specifically, it typically secures earnest money, which represents a buyer's commitment to purchase. The video emphasizes the role of the escrow account in maintaining financial fairness between the buyer and seller, without delving deeper into the specifics of earnest money, as that is covered in another video.
