escrow

     

Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible assets) is eposited into safekeeping (e.g. a bank account) under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition. Once the condition has been met, the escrow agent will deliver the asset to the party prescribed by the contract.

Trivia about escrow

  • It's the deposit of funds or documents with a neutral third party instructed to carry out an agreement
  • Money deposited into this type of account is held until all conditions of the real estate sale are met
  • After agreeing to purchase a home, funds go "into" this, until all the conditions of the sale are met