Can a seller back out after signing closing papers? Technically, a seller can back out any time before the escrow records the grant deed.When the property insurance or taxes are due, the bank will withdraw funds from the escrow account to pay the costs. Your offer can be withdrawn anytime before they accept it in writing (it's not a deal for real estate until all parties have signed). An escrow account is a third-party account that holds a good faith deposit payment for the house, which eventually goes towards the downpayment of the house. The check is usually made out to the seller's attorney, who holds it for safekeeping in a separate account called an "escrow account. Can you withdraw money from an escrow account? Money in an escrow account is only withdrawn when the escrow agent pays the seller to complete the transaction. You can withdraw your offer without any problem. You would simply have your real estate agent get in touch with the seller's agent, most likely orally at first.