What does escrow stand for?

Escrow is a legal concept describing a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction.

What does the word escrow mean?

Escrow is defined as when something valuable is defined as held in trust by an agent and turned over only after specified conditions have been met. An example of escrow is the holding of the deed and deposit money by an escrow agent for a home purchase while waiting for the completion of a list of conditions on both sides of the purchase.

What is escrow when buying a home?

Escrow is included in real estate to protect the buyer’s deposit, so the money goes to the right party per the conditions of the sale. Just as well, it’s included to hold the homeowner’s money for tax and insurance purposes. It’s easiest to think of escrow as the middleman who handles the risk on the buyer and seller transaction process ...

Is escrow good or bad?

Is Escrow Good or Bad? Escrow is generally considered good, as it protects the buyer and seller of a transaction. As well, escrow as part of mortgage payments is generally good for the lender and...