Escrow


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Related to Escrow: Escrow account, Escrow payment

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 ?
If a vendor licenses the same product to several clients and those clients require a high level of escrow protection, the parties can arrange a "master" agreement.
While escrow arrangements often implicate the use of the installment method, under certain circumstances, the method may not be available.
The administration of the escrow account is going to be extremely complicated.
This particular situation cannot very well be done without the participation of the escrow officer, because it is the escrow officer who must write the inflated commission check to the broker.
You can choose the escrow holder, and the fees charged by the escrow are or may be negotiable.
Sales proceeds held in a qualified escrow may be used to purchase identified replacement property.
ESNY provides bonded independent security for escrow deposits, assuming direct responsibility for escrow funds at every step of the escrow process, "right through to the delivery of signed and certified checks at closings.
Hold or held unclaimed escrow funds rather than turning the money over to the state.
When FIE is named escrow agent, it immediately takes full responsibility for the escrow funds, Halpern explained.
Wiener did apologize to the escrow industry for the pain that he had caused,'' Showers said.
The proper taxation of income in an escrow account has always involved some uncertainty.
Escrow Professionals Join Forces to Question Garamendi's Motivation for Proposal, Cite Risks