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Dan Horn, the Associate Broker for Coldwell Banker Schulz Realty and founder of Team Success Listing, answers common client questions in weekly videos. In this video, he explains what a repair escrow is. Essentially, during closing, the title company holds funds from the buyer to cover repair costs. Once repairs are completed, the funds are released to the contractor. There are different rules for FHA, HUD, and conventional mortgages. Dan shares a personal example of a repair escrow he experienced when buying a house in Lapeer.