Immediately after signing the purchase contract, all funds and documents are delivered to the escrow holder.

The deal is nearly final at this point-but homes can fall out of escrow for various reasons. Before my clients get to the escrow process, I try to anticipate and address any final obstacles that may arise.

As you may recall, the escrow holder is a neutral go-between that takes care of the all the final details related to the sale.
Ordering preliminary title report
Requesting loan payoff information
Obtaining loan documents from buyer's lender
Obtaining documents to clear any liens against the property
Issuing receipts for documents that are deposited
Prorating taxes, interest, association fees, etc.
Holding and distributing funds
Recording necessary documents such as deeds of trust, powers of attorney, reconveyances, etc.

Preparing estimated and final closing statements
Delivering the proceeds
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And remember-if you sell your home for a profit, you may not have to pay income tax on this money. Check with your accountant or tax attorney for more information.