Essentially Escrow is the process of two or more parties putting something of value (money or a deed) in the hands of a neutral third party until certain conditions are met. Escrow companies act as this neutral third party, overseeing real-estate transactions from initial deposit through final funding and property title/ownership transfer.
Two critical questions to ask your Escrow company: Are you a licensed company or controlled company? and Are you ALTA/SSAE18 audited and compliant?