What is a "sub-escrow" in real estate transactions?

A "sub-escrow" refers to a situation in real estate transactions where an insurer or a title company is responsible for managing specific documents and funds associated with an escrow account, but is not the primary escrow holder. This happens typically when there are multiple parties involved in a transaction, and a secondary layer of escrow is necessary to facilitate the smooth transfer of funds and documentation.

In a sub-escrow arrangement, the main escrow holder delegates certain tasks to another escrow agent or company. This can occur in complex transactions where one escrow company handles the overall transaction while a sub-escrow handles specific aspects, such as disbursing funds to different parties or ensuring that all necessary documents are properly signed and delivered. The role of the sub-escrow is critical in maintaining the flow of the transaction, ensuring that all contractual obligations are met.

The other options do not accurately define the concept of sub-escrow. For example, controlling funds directly by buyers or recording transactions by the escrowee focuses on different aspects of escrow operations and doesn't capture the essence of a sub-escrow's role in the broader context of real estate transactions.