An example of escrow is the holding of the deed and deposit money by an escrow agent for a home purchase while waiting for the completion of a list of conditions on both sides of the purchase.
Origin of escrowOld French escroue, roll of writings, bond from Medieval Latin scroda from Middle Dutch schrot, piece cut off: see shred
transitive verbes·crowed, es·crow·ing, es·crows
Origin of escrowAnglo-Norman escrowe variant of Old French escroe scroll ; see scroll .
- (law) A written instrument, such as a deed, temporarily deposited with a neutral third party (the Escrow agent), by the agreement of two parties to a valid contract. The escrow agent will deliver the document to the benefited party when the conditions of the contract have been met. The depositor has no control over the instrument in escrow.
- (law) In common law, escrow applied to the deposits only of instruments for conveyance of land, but it now applies to all instruments so deposited.
- (law) Money or other property so deposited is also loosely referred to as escrow.
- The state of property deposited with an escrow agent.
(third-person singular simple present escrows, present participle escrowing, simple past and past participle escrowed)
- To place in escrow.
From Middle English escrowl (“scroll”), from Old French escroue.
escrow - Investment & Finance Definition
An account that holds money or securities until some agreed upon event or condition is met. Escrows typically are used when purchasing a home. The down payment, or good faith deposit, goes into an escrow account and is held until the funds are disbursed to the seller at closing.
escrow - Legal Definition