Escrow

What is Escrow?

Escrow is a financial arrangement in which a third party holds and regulates the payment of funds between two parties involved in a transaction. The third party releases the funds once all conditions of the agreement are met, providing security for both the buyer and the seller. Escrow is commonly used in real estate, mergers, acquisitions, and online transactions.

Common Uses of Escrow

• Real Estate Transactions: Ensures funds are only released when all conditions are satisfied.
• Mergers and Acquisitions: Helps manage payments and legal requirements during the process.
• Online Purchases: Provides a secure payment method for e-commerce transactions.

Related Terms and Concepts

Trust account, payment gateway, financial security, transaction