escrow service

An escrow service is a neutral third party that securely holds funds or assets during a transaction until all agreed-upon conditions are met. For example, in a real estate deal, the buyer deposits the purchase money with the escrow service, which releases it to the seller once the property transfer is completed. This process protects both parties by ensuring payments and deliveries happen as agreed, reducing risk of fraud or default. Escrow services are commonly used in online transactions, real estate, and other high-value exchanges to provide trust and security.