Escrow

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Escrow

Property or money held by a third party until the agreed upon obligations of a contract are met.

Escrow

A certificate stating that an asset is being held by a third party on behalf of two parties to a transaction until certain conditions are filled. An escrow agreement is issued by the bank or other institution holding the asset in escrow and is useful to prove to one party or the other that the escrow has in fact taken place. See also: Escrow agent.

escrow

The holding of assets (that is, securities) by a third party.

Escrow.

When someone else holds assets of yours until the terms of a contract or an agreement are fulfilled, your assets are said to be held in escrow. The assets could be money, securities, real estate, or a deed.

The person or organization that holds the assets is the escrow agent, and the account in which they are held is an escrow account.

For example, if you make a down payment on a home, the money is held in escrow until the sale is completed or the deal falls through.

Amounts you prepay to cover property taxes and insurance premiums as part of your regular mortgage payment are also held in escrow until those bills come due and are paid. In that case, you may earn interest on the amount in the escrow account.

escrow

The process in which money and/or documents are held in trust by a disinterested third party who will consummate the instructions of the parties as expressed in their contracts.The third party is called the escrow agent.The escrow agreement usually contains a clause providing that if the parties disagree about something and are unable to resolve their differences, the escrow company will pay all money on hand into court in an action called an interpleader,name the disputing parties as defendants,disclaim any interest of its own in the property except for reimbursement for costs and expenses of bringing the interpleader action, and then let the parties battle it out in court. This effectively takes the escrow company out of the middle of any disputes and avoids liability on its part.

References in periodicals archive ?
Anyone still in the middle of an escrow transaction with either Universal or Sacramento Title companies is asked to call those offices Monday and speak to Department of Insurance officials who will be there.
P will not purchase replacement property for T, the sales proceeds are placed in an escrow account that restricts T's access to the funds.
Because most owners do not contest cases after tenants disappear, nor pursue them for back rent or damages to the apartments, if the orders about to be issued require the escrow, the policy will hurt them tremendously.
After an easy to follow Table of Contents, the escrow pamphlet is broken up into clear sections, including an Introduction and Brief Overview, Escrow Basics (with 26 questions and answers), Helpful Tips (7 tips are provided), a discussion entitled "Beware of Fraud" (with 7 additional points with regard to fraud avoidance), a Conclusion, and References for further research by or assistance to the reader.
Harold Wiener, 53, controller of Country Oaks, pleaded no contest to grand theft of the escrow trust fund, admitting he embezzled between $2.
Founded in 1956, the California Escrow Association (CEA) is a statewide organization for professional escrow practitioners with more than 2,500 members.
The Department is leading the Escrow Fraud Task Force comprised of the FTC, FBI, Southern California High Tech Task Force, LA County Sheriff's Department, and the Escrow Institute of California to coordinate fraud prevention and enforcement actions against fraudulent Internet escrow companies.
Scammers setup hundreds of fake escrow sites using stolen IDs, credit cards, and Yahoo email.
Users of Internet auction sites, such as eBay, and marketplaces that advertise classifieds are vulnerable to scam artists who commit Internet escrow fraud.
The total amount of funds to be returned to approximately 700 customers of The Escrow Source, Inc.
Our routine regulatory examination discovered that for nearly two years The Escrow Source had seriously misrepresented the company's financial condition," said Kam Coveyou, a spokesperson for the California Department of Corporations.