Escrow Account
Escrow is a financial arrangement where a third party holds and regulates the payment of funds or assets on behalf of two parties involved in a transaction. The funds or assets are held in an escrow account until certain conditions are met or obligations are fulfilled. This ensures a secure and transparent process for both parties, especially in transactions where trust may be a concern.
Escrow is commonly used in real estate transactions, online purchases, and other situations where a neutral party is needed to oversee the exchange of goods or services. The escrow agent, often a financial institution or a specialized escrow service, releases the funds or assets to the appropriate party once all the specified conditions are satisfied.
This arrangement provides a level of security and confidence for both the buyer and the seller, reducing the risk of fraud or default in the transaction.
