A house that has yet to be transferred from seller to buyer is considered "in escrow. This blog post aims to unravel the legal intricacies and potential consequences of backing out of an escrow contract in California's real estate market.An escrow ensures that the seller receives payment for the home and that the buyer gets title to the property. The escrow company is a neutral third party. The buyer and seller can both choose their own escrow company, but most often, the buyer's lender or real estate agent will recommend one. The buyer and seller agree to an escrow timeline during contract negotiations, and each sale varies, but normally escrow takes around 30 to 60 days to close. Similarly, in a real estate transaction, when a buyer and seller negotiate a credit at the outset of a transaction, which is usually reflected in the. Seller accepts buyer's offer and both parties sign a purchase contract. The Escrow Holder gathers the down payment from the Buyer and the loan monies from the Lender. Escrow occurs between the time a seller accepts the offer and the buyer gets the keys to the new house.