The Cash Holdback Escrow Solution

The parties involved in the purchase, sale and refinance of real estate are often confronted with obstacles that can hold up the closing of the real property transaction.  One solution is to have the parties agree to have cash held back at the transaction closing in a Cash Holding Escrow or Cash Holdback Escrow pending the resolution of the problem.  Cash or closing proceeds can be set aside and held by an independent third party or escrow agent until the pending items are completed or conditions have been met or resolved.

The Cash Holding Escrow or Cash Holdback Escrow is a very simple escrow solution to an often complicated problem.  These problems often arise at the last minute and can delay, complicate or even result in the cancellation of some already fragile real estate transactions. 

Putting a Cash Holdback Escrow or Cash Holding Escrow in place at the last minute can save these transactions.  But, many independent escrow companies, title insurance companies, trust companies, banks and other financial institutions will often decline to administer these Cash Holding Escrows or Cash Holdback Escrow account transactions because they do not have adequate systems to track the various requirements for the Cash Holdback.