escrow agreement

An escrow agreement is a legal arrangement where a third party, called an escrow agent, holds funds, documents, or assets on behalf of two parties involved in a transaction. This ensures that the seller receives payment and the buyer receives the agreed-upon goods, services, or documents only when all conditions of the agreement are met. The escrow agent ensures fairness and security, releasing the assets to the appropriate party once the specified conditions are satisfied. It provides trust and protection for both parties during complex or high-value transactions.