Back-to-Back Escrow Law and Legal Definition
Back-to-back escrow means an escrow set up to oversee the concurrent sale of one property and the purchase of another property by the same party. For instance, when X has agreed to convey his/her property for $ 100,000 to Y who had contracted to convey the land upon close of the first escrow to Z for $ 320,000, it is a back-to-back escrow. It permits a person to complete the purchase of one property, and immediately complete the sale of his/her current home. Back-to-back escrows often happens when doing a refinance and there is a first mortgage and a second mortgage by different companies. Back-to-back escrows are also known as concurrent escrows.