Escrow & Title
What is an 'escrow holdback' in a Delaware real estate closing?
AFunds held by the lender from the mortgage proceeds until certain conditions are met
BAn amount held in escrow after closing to cover repairs or completion of outstanding items✓ Correct
CThe portion of the buyer's funds withheld pending loan payoff
DThe Commission's hold on a broker's license pending investigation
Explanation
An escrow holdback is an amount retained in escrow after closing (held by the closing agent or an escrow company) to ensure completion of specified repairs or remediation — funds are released to the seller when the agreed work is completed.
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Key Terms to Know
Escrow
A neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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