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.

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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.

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What Goes Into Escrow?

Here’s what is typically held:

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Earnest Money Deposit

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

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Signed Documents

Contracts, disclosures, and required addendums.

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Closing Funds

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

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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

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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

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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

Phone: 857-249-7392

Serving Plymouth, Campton & Central New Hampshire

Brokered by Three Hills Real Estate Service