Back to back escrow

Back to back escrow

A closing arrangement that is set up so that the buyer can finalize the purchase of one property and the sale of another simultaneously.

Back-to-back escrow

A back-to-back escrow is arranged so that a homeowner can sell one property and purchase another simultaneously. This arrangement is useful in cases where the homeowner can only carry one mortgage at a time. Back-to-back escrow allows for the transition from an existing mortgage on the property that's being sold directly to a new mortgage on the purchased property. Including a back-to-back escrow contingency in a home purchase offer makes the offer less appealing to the seller.