Meaning & use

escrow

noun·Academic

Money or a document held by a neutral third party until agreed conditions of a transaction are met.

See it in a sentence

The buyer's deposit was held in escrow until the home inspection was complete.

The lawyer released the funds from escrow once both parties signed the final contract.

A note on using this word

Escrow protects both parties in a deal by ensuring funds or documents change hands only after agreed conditions are satisfied.

Words with a similar meaning

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