The holding of assets, including legal documents or cash, by a third party. For example, the owner of real property may be required to leave a deed in custody of a third party until a loan is completely repaid. See also trust account.
The condition of being ineffective until certain conditions are met. For example, money inherited by a minor might be held in escrow until the heir reaches a certain age. Homeowners with mortgages frequently pay money for insurance and taxes on their home into an escrow account each month. The holder of the mortgage then pays the insurance and tax bills out of the escrow account when the bills are due.
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.
An arrangement under which
something (money, a document, or property) is held in trust by a third party
until the occurrence of a condition allowing its release to a party to an
underlying transaction. For example, a down payment may be held in escrow,
typically by the realtor or a lawyer, until the closing of a real estate