Escrow Account

An escrow account is a financial arrangement where a third party holds funds or assets on behalf of two other parties involved in a transaction. This setup ensures that the buyer's payment is kept safe until the seller meets specific conditions, such as delivering a product or service. Once those conditions are fulfilled, the escrow agent releases the funds to the seller. Escrow accounts provide security and trust, reducing risks for both parties in real estate deals, online purchases, or other transactions requiring assurance that commitments will be honored.