ESCROW Agreements

An escrow agreement is a legal arrangement where a third party temporarily holds funds or assets on behalf of two parties involved in a transaction. This ensures that the buyer and seller fulfill their obligations before the exchange occurs. For example, in a home sale, the buyer deposits the purchase money into escrow, and the seller provides the deed. Once all terms are met, the escrow agent releases the money to the seller and the deed to the buyer, protecting both parties from potential risks. This process adds security and trust to various transactions.