Contracts
What is an escrow holdback in a Nevada real estate closing?
AA penalty the buyer charges if the seller delays closing
BFunds withheld in escrow at closing to cover incomplete repairs or items to be completed after closing✓ Correct
CA lender's reserve for property taxes
DEarnest money held by the broker after cancellation
Explanation
An escrow holdback is a sum of money withheld from the seller's proceeds at closing and placed in escrow to ensure that agreed-upon repairs or conditions are completed after closing. Once verified, the holdback is released to the seller.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
EscrowA 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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
State-Specific Concepts
Escrow Disputes
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