Is escrow used in Nova Scotia real estate transactions, and how are funds typically held?

Is escrow used in Nova Scotia real estate transactions, and how are funds typically held?

• A. In NS, deposits are typically held in a broker's trust account rather than a dedicated escrow; funds are held until closing and then disbursed accordingly.
• B. All funds are held by the government until closing.
• C. A third-party escrow service is mandatory in NS.
• D. Funds are deposited directly with the seller.

Answer: (D)

Nova Scotia real estate funds aren’t kept in a separate escrow service. In NS, deposits are held in trust—usually in the broker’s trust account (or the lawyer’s trust account)—and kept there until closing. This trust arrangement safeguards the funds and ensures they’re disbursed properly at closing. A government-held fund or a mandatory third-party escrow service isn’t part of the standard process, and funds aren’t deposited directly with the seller. Instead, the deposit sits in trust and is typically applied to the purchase at closing, with disbursement to the seller as part of the closing proceeds.

Nova Scotia real estate funds aren’t kept in a separate escrow service. In NS, deposits are held in trust—usually in the broker’s trust account (or the lawyer’s trust account)—and kept there until closing. This trust arrangement safeguards the funds and ensures they’re disbursed properly at closing. A government-held fund or a mandatory third-party escrow service isn’t part of the standard process, and funds aren’t deposited directly with the seller. Instead, the deposit sits in trust and is typically applied to the purchase at closing, with disbursement to the seller as part of the closing proceeds.