Finance glossary
Escrow
Definition
A neutral third party holding funds or assets until conditions are met.
Escrow is an arrangement where a trusted third party holds money or documents until both sides of a deal meet their obligations. It is common in real estate, where it secures the deposit, and in mortgages, where it holds funds for taxes and insurance.
In a sentence
The buyer's deposit sat in escrow until the sale officially closed.
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