Escrow

Definition

• An account in which a neutral third party holds the documents and money in a real-estate transfer until all conditions of a sale are met. Also, an account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.

Synonyms
guarantee, reliable, promise, bond, confidence, neutral, third-person

Related Terms and Acronyms

• Conditional Sale (C/S) — Acronym,
  • An agreement between the buyer and seller in where certain conditions must be met before the property sale can be finalized.
• Escrow Agent — Definition,
  • A neutral third party who holds the documents and money in a real-estate transfer until all conditions are met.
• Trust Account — Definition,
  • An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.