Thanks for you question and good morning.
Here once the real estate
sales contract is signed the title company cashes the check but holds it as the escrow
agent and it is held in escrow until closing.If it does not close it may be refunded to you if there was no default.
The sale here is not considered complete until the check is cashed it serves as earnest money and a necessary element of a valid sales contract.
Remember they cash the check but it is being held by a neutral third party the escrow agent and has not been spent or disbursed to the seller.
But hey have to cash the check in order for there to be a valid contract.This protects you from the seller taking a different offer, say a higher one and locks in your sales contract.
Again you may get your funds back if the deal does not close and you are not at fault.The funds do not leave escrow until the deal closes.Both parties are held to the sales contract until released .
I appreciate the chance to help you today. Please let me know if you have more follow up.Thanks again.
This is perfectly normal here in Arizona.You will be credited at closing for the escrowed funds.