An escrow account is a neutral third-party account that holds funds during a real estate transaction until all conditions of the sale are met.
During a home purchase, the buyer's deposit goes into escrow and is released to the seller only when the deal closes. Beyond the transaction itself, escrow accounts are also used to collect and hold monthly payments for property taxes and insurance, ensuring those bills get paid on time. In co-ownership, escrow accounts play an important role in keeping shared finances organized and transparent.
GoForth, a luxury co-ownership company, uses escrow during every property acquisition to protect buyer funds until closing is complete. After purchase, GoForth manages a shared reserve account for each property's ongoing expenses — taxes, insurance, maintenance — funded by the four co-owners' annual fees. This structure ensures every dollar is accounted for, and owners always know exactly where their money is going.