What does 'double escrow' refer to in real estate?

Double escrow refers to a scenario in which two transactions involving the same property are processed simultaneously. This situation typically occurs when a property owner sells a property while simultaneously purchasing another property, often using the same funds from the sale to facilitate the new purchase. The coordination of these two transactions through separate escrow accounts allows for streamlined processes, where the seller's proceeds from one transaction directly support the acquisition of the new property.

This phenomenon is particularly useful in real estate when individuals want to ensure a seamless transition between homes without needing to handle the logistics of multiple closings on different days. It enables the buyer to secure their new property without needing to wait for the first transaction to settle completely, thus promoting efficiency in real estate transactions.