The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a QI in a deferred exchange. A house that has yet to be transferred from seller to buyer is considered "in escrow.These are the top 10 questions we have received to date from withholding agents regarding the new Form 593. As a new owner, you are responsible for any taxes that were not paid as of the time escrow closed. This means as the seller you are required to fill out Form 593 and provide it to the escrow company so they know how much to withhold for you. I am in escrow, selling a CA rental condo, and I do not know how to complete Form 593. Escrow is a legal agreement between two parties for a third party to hold onto money or assets until certain conditions are met. Unless specifically agreed upon between Buyer and Seller, all taxes are prorated in escrow on a 360 day year or 180 day half year. Escrow occurs between the time a seller accepts the offer and the buyer gets the keys to the new house. How do you prepare for it?