Escrow

Escrow is a financial arrangement where a third party holds and controls funds for two parties involved in a transaction until all conditions are met. Commonly used in real estate, escrow accounts can hold funds for property taxes or insurance payments, helping ensure they’re paid on time. Escrow protects both buyers and sellers, reducing risks by ensuring that neither party can access the funds until all contractual requirements are fulfilled. This process adds a layer of security and smoothness to transactions.