Escrow
Escrow is a financial instrument held by an escrow agent on behalf of a buyer and a seller of property. Escrow is held by an escrow agent until all obligations between two sides are fulfilled. Real-estate, documents, securities or money can be used as Escrow.
If You are selling a car, for example ,and there is a clause of good condition of the property in an agreement , the buyer of the car deposits the money to the escrow account. It should assure You that the buyer will pay for the car if the clause of good condition is satisfied.
| Related Terms: Escrowed To Maturity |