If you sell your home in California, you are likely to use the services of an escrow company. Here is what escrow does: Through negotiations, the home buyer and seller establish the property price, terms and conditions for the ownership transfer of the property. These terms and conditions are given to a third party know as the escrow holder. The escrow holder acts for both buyer and seller and protects the interests of each within the authority of the escrow instructions. Escrow Instructions, which are prepared by the escrow officer, identify all of the terms and conditions of the escrow, as well as the escrow holder’s general provisions and legal responsibilities and limitations. They are usually detailed in nature and prepare the escrow officer for every situation.