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In this weekly Q&A video, Todd Tremonti explains the concept of an escrow account. He describes it as a neutral third-party bank account used during real estate transactions to hold funds—especially earnest money—until the deal is finalized. In Texas, these accounts are typically managed by title companies. Tremonti notes that the funds in escrow are governed by the terms of the transaction, serving as a safeguard for both buyers and sellers. He mentions that there is a separate video discussing earnest money for those interested in more details about that aspect.
