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Escrow is the process of depositing money and documents with a neutral third party (the escrow agent, usually the title company) who holds them until all conditions of a real estate transaction are met, then disburses funds and delivers documents to the rightful parties.

In Idaho, real estate closings are commonly handled by a title or escrow company; parties may still consult an attorney for complex transactions. Escrow, closing, and settlement-protection services connected to title insurance are supervised by the Idaho Department of Insurance (Idaho Code Title 41, Chapter 27; see § 41-2705).

Escrow gives every party confidence: no money changes hands and no documents are delivered until all conditions are satisfied. As a neutral escrow agent, the title company receives the funds and signed documents, confirms the conditions of sale are met, disburses the money, and records the deed, protecting buyer, seller, and lender alike.

Source: Idaho Code Title 41, Chapter 27 (§ 41-2705)

• Escrow Agreement
• Closing
• Earnest Money
• Third Party
• Escrow Instructions
• Long-Term Escrow

Reviewed by Kootenai Title & Bonner Title Editorial Team · Last updated June 19, 2026
This definition is educational and not legal advice. See our Editorial Policy.