WHAT IS ESCROW?

In The United States there are 50 States. Each state has there own set of laws that they follow, some states chose to have specific laws that involve Escrow, and some states are No Escrow States.

In The State of California, we are an Escrow State, so therefore an Escrow Company directs the closing of a Real Estate transaction. The Escrow company has a duty to act as a neutral 3rd party, in completion of the exchange of funds, as well as proper documentation of clear Title, Deed, Loan Approval Documents, and more. 

In states with No Escrow, an attorney takes the place of an Escrow company in closing.

A Notary Signing Agent comes into play in the closing process when documents need to be verified such as loan document signing.

Examples of Escrow States:

California, Nevada, Oregon, Idaho, Arizona, New Mexico, and Alaska

Examples of Non Escrow States:

Arkansas, Ohio, Indiana, Minnesota, Colorado, Louisiana, Michigan, and Montana

Examples of Non Escrow States that Require an Attorney:

New York, Maine, North Carolina, South Carolina, Georgia, West Virginia, and Massachusetts

Here is a recent article with good information from the LA TIMES about what Escrow is.

LA TIMES