The Big Selling Sunset Question: What Is Escrow?

Why do the Selling Sunset realtors love ringing that bell so much?

Selling Sunset

by Daisy Hall |
Updated on

Apart from occasionally looking at overpriced flats which we would never be able to afford on Rightmove, as much as we think we are, here at Grazia we're no property experts. That's why we always find ourselves thinking one thing while watching Selling Sunset: What is 'Escrow'? And what is it about 'getting out of escrow' that means the agents get so excited they almost pull the rope off the bell they have to ring in the office?

Turns out we're not the only ones asking that question, as numerous people on Twitter have been shouting the same question into the abyss.

So, What Is Escrow?

In its' most basic form, if something is 'in escrow', then it means that it's in a temporary state. It's a kind of legal holding point whereby a transaction can't be released until certain conditions are met.

The term is mainly associated with real estate in the United States, hence why we hear the word 'escrow' on the show so much. On Selling Sunset, it means a neutral third party is holding onto funds during a transaction. It's used to protect buyers and sellers, so sellers know that their buyers have the money to purchase the house, and that buyers know they're not being scammed with some fake million-dollar listing.

If something 'falls out of escrow', it means that something went wrong, like the terms of the purchase contract and that's not a good thing. Getting out of escrow however, is a good thing because it means that everything has gone through and that cheque will be clearing very soon.

Selling Sunset realtor Chrishell Stause also cleared it up for one confused fan, explaining, 'Escrow is when you are in a current deal to get a house sold. Escrow is the safe 3rd party that holds the money until all the red tape is done.'

So there you have it, the official definition of escrow from one of Selling Sunset's biggest stars. You're welcome!

Daisy Hall is a News and Entertainment writer on Grazia, specialising in TV and film meaning that you can count on Daisy for the latest (and best) recommendations.

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