Escrow is a vital part of any real estate transaction and protects the financial interests of both buyers and sellers. How does escrow work?And what documentation do you need to set it all up? • The Buyer or Seller must fill out and sign the "Escrow Account Agreement" form (depending on who is establishing the POS Escrow Account). Escrow Instructions and Contingencies. Escrow instructions outline the conditions that both the buyer and seller must meet before the transaction can proceed. Once reviewed and approved, either the buyer or the seller is required to establish an escrow account in the amount of 150 percent of the cost of the repairs. Customer: I am in escrow for a home purchase in Ohio. If I want to back out of the contract, am I liable for more than my earnest money deposit? The buyer can instruct the settlement agent to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions.
