Escrow
A bond, deed, or other document kept in the custody of a third party and taking effect only when a specified condition has been fulfilled.
In real estate, escrow refers to a neutral third party (often an escrow agent or company) holding funds and documents related to a transaction until all conditions of the sale are met, ensuring a fair and secure exchange.
Word relationships
- Stakeholding: Similar concept of a third party holding assets, but 'escrow' is specific to legal and financial transactions.
Collocations
- in escrow
- escrow account
- escrow agent
- escrow funds
- open escrow
- close escrow
Example sentences
- "The buyer's earnest money was placed in escrow until all contingencies of the home purchase agreement were satisfied." Escrow protects both buyers and sellers.
- "Once the final inspection was complete, the escrow agent released the funds to the seller, officially closing the deal." Closing a real estate deal involves escrow.
Memory hook
Think of an ESCROW account as a safe place where your money is 'SCROLLed away' until the deal is done. Scroll away
When not to use
Do not use 'escrow' to mean simply 'holding money'. It specifically implies a third-party holding funds or documents contingent on conditions being met.
Fun facts
- The concept of escrow dates back to medieval times, used to ensure agreements were honored before the final transfer of property or goods.
Explore more words
fiduciary, Binding, transaction, broker, custody, Due diligence
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