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An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender. This initial amount may be different from what you pay monthly to maintain the escrow account.
In California real estate, the buyer is protected by the contract. First off, with most transactions the buyer will write whatâs called an Earnest Money Deposit (also called an Initial Deposit or EMD). This is generally 1-3% of the sales price and is put into escrow. The money is taken out of the account and held. Think of it like a security deposit when you rent a place.