Very simply defined, an escrow is a deposit of funds, a deed, or other instrument by one party for the delivery to another party upon completion of a particular condition or event agreed upon by all parties to a transaction Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. The Escrow Holder has the obligation to safeguard the funds and/or documents while they are in his possession, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with. In most Eastern and Southern States, this function is performed by an attorney.In California, Corporations such as PACIFIC ESCROW INC., licensed and closely monitored by the Department of Corporations (DOC), act as the NEUTRAL and INDEPENDENT Escrow Holders. All funds are deposited in Trust Accounts and are subject to DOC audits without notice. In addition, Independent Certified Public Accountants audit and prepare their annual financial statements, specially looking into their compliance with minimum liquidity and other tests required by law.