Escrow Holdback

Definition

Money held at closing to secure future obligations like repairs that weren't completed—basically a hostage fund to ensure contractors actually finish their work.

Example Usage

We placed $15,000 in escrow holdback to ensure the seller completed the agreed-upon repairs.

Origin

Real estate contract and escrow terminology

Fun Fact

Holdback amounts typically range from 1-2x the estimated repair cost.

Source: Real Estate Escrow Standards

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