Escrow Account
/ˈɛskroʊ əˌkaʊnt/
Definitions
- (n.) A financial arrangement where a third party holds funds or property temporarily until specified conditions are met by the contracting parties.
The buyer deposited the purchase money into an escrow account until the sale was finalized.
- (n.) An account managed by an independent agent to safeguard money or documents involved in complex transactions, typically real estate or mergers.
The real estate agent transferred the earnest money to the escrow account to ensure compliance with the contract terms.
Forms
- escrow accounts
Related terms
See also
Commentary
Escrow accounts are commonly used in real estate and business transactions to protect parties by holding funds or documents until contractual obligations are satisfied.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.