Escrow Accounts

An escrow account is a financial arrangement where a third party holds money or assets on behalf of two other parties involved in a transaction. This ensures that the funds are safely kept until all conditions of the agreement are met. For example, in real estate, a buyer deposits money into an escrow account, which is only released to the seller once all contractual obligations, like inspections and financing, are completed. This protects both sides and adds a layer of trust to the transaction, as it ensures that neither party can access the funds prematurely.