Escrow & Title
A 'construction escrow' in a NC new construction transaction holds:
AOnly the buyer's earnest money
BConstruction loan draws that are released incrementally to the builder as construction milestones are completed✓ Correct
CThe closing attorney's fees
DThe title insurance premium
Explanation
Construction loan funds are held in a construction escrow and disbursed to the builder in draws as construction milestones are verified (typically by an inspector), protecting the lender's funds during the build.
Related North Carolina Escrow & Title Questions
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