The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a QI in a deferred exchange. Property taxes in Sacramento are prorated during escrow based on the closing date.The escrow agent may withhold and remit to the Franchise Tax Board if the parties agree. As soon as escrow opens, provide the seller a copy of Form 593. Ensure the form's tax year matches the tax year in which the transaction occurs. The escrow process handles the money, collecting deposits and other payments from your buyer, assuring you complete protection. An escrow company is a neutral third party between the seller and the buyer who holds the money until the home sale is final. Your mortgage lender might pay your real estate taxes from an escrow account. Enter the Escrow Transaction – The escrow agent ensures all required documents are in order so the buyer can deposit funds in the newly opened escrow account. Your mortgage lender might pay your real estate taxes from an escrow account.