The buyer, the seller and the bank sign an agreement, whereby they agree on necessary documents, terms and other conditions as required to complete the deal, along with any critical milestones along the way. An escrow agent – the bank, acts as an impartial holder of the money or documents, and in this way keeps the risk of such things as fraud to a minimum for both parties. http://www.immigration-residency.eu/real-estate/escrow-account/