Escrow

Escrow is a financial arrangement where a third party holds and manages funds or assets during a transaction until all agreed conditions are met. For example, when buying a house, the buyer deposits the payment into an escrow account, and the seller hands over ownership documents. The escrow agent ensures that both parties fulfill their obligations—like inspections and paperwork—before releasing the funds to the seller and transferring the property to the buyer. This process provides security and trust, as it protects both the buyer's and seller's interests until the deal is finalized.