Escrow & Title
What is the purpose of a 'holdback' in a Washington real estate escrow?
ATo delay payment to the listing agent
BTo retain a portion of proceeds pending completion of agreed-upon repairs or conditions after closing✓ Correct
CTo hold back the earnest money until after inspections
DTo defer recording until financing is confirmed
Explanation
An escrow holdback retains a portion of the seller's proceeds in escrow pending completion of specified post-closing work (such as repairs, installation of appliances, or certificate of occupancy issuance). Funds are released to the seller when the conditions are met.
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