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 ?
For many borrowers, having the lender responsible for paying taxes and insurance out of the escrow account is a welcome convenience.
* provide the borrower with an annual escrow account statement; and
Moreover, some of the escrow applications--including both the allegation and shared-interest escrows described above--create the possibility of orphaned escrow deposits that remain eternally locked in escrow because the requisite conditions for release are never met.
The escrow company came into full operation in January 2008 to bring LAFCU's business completely in-house.
Experienced technology escrow companies also have standard escrow contracts designed to operate seamlessly in conjunction with the substantive choices selected.
Today, many licensed products are embedded in a company's own products-- because these are often tied to mission-critical operations, they are often escrowed. What contracts would be affected if this technology fails?
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.
There are no sound justifications for the disparity in prices charged for competitive and negotiated advance refunding escrows. Competitive and negotiated advance refunding escrows face all the same purported risks.
4 and signed by acting commissioner Joseph D'Agosta, this money must be escrowed even if the overcharge was made by a former owner.
The staff at Oakwood Escrow is thrilled to have Jennifer aboard!
The problem of orphaned escrows is also a chief reason why we (by a slight margin) prefer an asymmetric system where depositors cannot change their minds and rescind or cancel their deposit.
If there isn't a significant ongoing issue confronting the business, typically the escrow amount will be close to 5 percent.