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What Is Escrow in a New Hampshire Real Estate Transaction?

🏡 What Is Escrow in a New Hampshire Real Estate Transaction?




If you’re buying or selling a home in Plymouth, Campton, Thornton, Rumney, or anywhere in Central NH, you’ll hear the term “escrow” come up early in the process.


But what does it actually mean — and how does it protect you?




Here’s a simple breakdown.


What Is Escrow?



In New Hampshire real estate, escrow is a secure, third-party account used to hold money and documents during the transaction.


Its purpose is to make sure both the buyer and seller are protected until all conditions of the contract are met.


What Goes Into Escrow?



Here’s what is typically held:




Earnest Money Deposit



The buyer’s good-faith deposit is held by the listing broker or closing attorney.




Signed Documents



Contracts, disclosures, and required addendums.




Closing Funds



In some transactions, closing proceeds or payoff funds may move through escrow.


How Escrow Protects Buyers

Ensures the seller cannot take your deposit without cause


Keeps your money safe until inspections, appraisal, and financing are completed


Prevents the seller from backing out without following the contract rules


How Escrow Protects Sellers

Shows the buyer is serious and financially committed


Ensures the buyer can’t walk away without proper notice


Keeps the process structured and prevents delayed payments


When Escrow Ends



Escrow closes when:


All contingencies are met


Final documents are signed


Funds are transferred


You officially take ownership of the home




At that point, the escrow account is released and the transaction is complete.


Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392




Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Website: www.ThreeHillsRES.com

 
 
 

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