- Escrow refers to a neutral third party holding assets or funds before they are transferred from one party in a transaction to another.
- The third party holds the funds until the buyer and seller fulfill their contractual requirements.
- Escrow is associated with real estate transactions, but can be used in any situation where funds are transferred from one party to another.
- Escrow can be used when buying a house and for the entire term of the mortgage.
- Online escrow is becoming increasingly popular as a way to offer secure online transactions for high value items such as art or jewelry.