Escrow is a neutral, thirdparty account used to hold funds or documents on behalf of people in a transaction. It starts when the seller accepts a buyer's offer.When something breaks or needs repairing, a seller has two options on how to proceed. First, prior to settlement, a seller can repair or replace what broke. 40 days after closing, buyer is asking us to pay for the remediation of a minor crack in the basement wall despite waiving all inspections waived. A common solution is to hold money in escrow until repairs are completed. The seller either gives the money to the buyer in a lump sum or it's placed in escrow. State law in Pennsylvania (68 Pennsylvania Statutes § 7304) requires that home sellers provide buyers a filledout disclosure form. Essentially, a repair escrow is an agreement between the Buyer and Seller to set aside money to complete required repairs after the transaction closes.
