Escrow is a joint financial account between buyer and seller from which no money can be released without both parties agreeing. In Mexico, these funds sit in an account safeguarded by a legal trust agreement.

The earnest money deposit (typically 10% of the transaction value), the remaining balance due before closing, and the closing costs are all wired into and held in this account.

At closing, both parties sign off on how the funds will be distributed among everyone involved. Once everything is finalized, the notario forwards the distribution document to the escrow company and authorizes the release. The escrow company then wires the money accordingly and sends confirmation of the transfers to the notario and the agents.