Escrow

A Escrow is a financial instrument or asset being held by a third-party until a financial transaction is completed.

• See: Obligation, Contractual Agreement, Bank Account.

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References

2016

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Escrow
  • An escrow is:

• a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties, or
• an account established by a broker for holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction; or,
• a trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.

The word derives from the Old French word escroue, meaning a scrap of paper or a scroll of parchment; this indicated the deed that a third party held until a transaction was completed.

• (Investopedia, 2016) http://www.investopedia.com/terms/e/escrow.asp
  • Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Money, securities, funds and other assets can all be held in escrow.

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