Escrow


Escrow
A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow.

An escrow account can be used in the sale of a house, for example. If there are conditions to the sale, such as the passing of an inspection, the buyer and seller may agree to use escrow. In this case, the buyer of the property will deposit the payment amount for the house in an escrow account held by a third party. This assures the seller - in the process of allowing the house to be inspected - that the buyer is capable of making payment. Once all of the conditions to the sale are satisfied, the escrow transfers the payment to the seller, and title is transferred to the buyer.


Investment dictionary. . 2012.

Look at other dictionaries:

  • escrow — I noun conditional deed held in trust, conditional instrument, contingent deed held in trust, entrustment, instrument held until the performance of a condition, written instrument of contingency II index binder Burton s Legal Thesaurus. William C …   Law dictionary

  • Escrow — is a legal arrangement in which an asset (such as cash, real property or other tangible assets) is deposited into safekeeping (e.g., a bank account) under the trust of a neutral third party (escrow agent) pending satisfaction of contractual… …   Wikipedia

  • Escrow — bedeutet so viel wie Treuhand oder Hinterlegung. Inhaltsverzeichnis 1 Etymologie 2 Software Kontext 3 Treuhand Kontext 4 Weblinks …   Deutsch Wikipedia

  • escrow — [es′krō΄] n. [OFr escroue, roll of writings, bond < ML scroda < MDu schrot, piece cut off: see SHRED] Law a written agreement or something of value put in the care of a third party and not delivered until certain conditions are fulfilled a… …   English World dictionary

  • Escrow — Es crow, n. [OF. escroe, escroue, a roll of writings, bond. See {Scroll}.] (Law) A deed, bond, or other written engagement, delivered to a third person, to be held by him till some act is done or some condition is performed, and then to be by him …   The Collaborative International Dictionary of English

  • escrow — The holding on to of money or a written document, such as shares or a deed, until certain conditions are met by the two contracted parties. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • escrow — 1590s, from Anglo Fr. escrowe, from O.Fr. escroue scrap, roll of parchment, from a Germanic source akin to O.H.G. scrot scrap, shred (see SCROLL (Cf. scroll) (n.)). Originally a deed delivered to a third person until a future condition is… …   Etymology dictionary

  • escrow — [n] collateral bond, deed, guarantee, insurance, pledge, security; concepts 71,271,685 …   New thesaurus

  • escrow — Property or money held by a third party until the agreed upon obligations of a contract are met. Bloomberg Financial Dictionary * * * escrow es‧crow [ˈeskrəʊ ǁ kroʊ] noun [uncountable] LAW 1. when money or Securities related to a business deal or …   Financial and business terms

  • escrow — n. /es kroh, i skroh /; v. /i skroh , es kroh/, Law. n. 1. a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition. 2. in… …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.