Living and building in Minnesota can present unique challenges when it comes to completing certain details of a new home. While our team will do everything we can to get every aspect finished, sometimes there are projects that will be completed after closing. 

What is Escrow? The term escrow is a service or account provided by a neutral third party, such as an escrow company, lawyer or notary, mortgage lender or servicer, or title agent. Think of it as a method that ensures parties on both sides honor in good faith their commitments and obligations in a deal. 

New Construction Escrow: Set up like other kinds of escrow accounts, construction escrow is focused on holding and disbursing borrowed construction loan proceeds to general contractors and subcontractors on building projects. Construction escrows are usually administered by title agencies, who aside from paying vendors for their work, watch out for lien filings from unpaid vendors or other parties that could disrupt the project. 

Weather, contractor schedules, and more can impact when these items will be completed. Due to the potential domino effect of delays, our timeline for escrow completion can be mid-summer. Contact us if you have any questions or need further clarification.