Definition, Meaning & Synonyms
escrow
noun
/ˈɛskroʊ/
Definition
A financial arrangement in which a third party temporarily holds assets or funds until a specified condition is met.
Examples
- The buyer paid the deposit into escrow until the sale was finalized.
- Escrow accounts are commonly used in real estate transactions.
- Funds remain in escrow until the project milestones are achieved.
Meaning
Escrow typically refers to a legal agreement in which an asset is held by a trusted party on behalf of two other parties involved in a transaction, ensuring that both parties fulfill their agreed obligations.
Synonyms
- trust account
- escrow account
- holding account
