Definition
A neutral third party holding funds or documents until conditions are met, or a servicing account for taxes and insurance.
Example
The escrow account collected $412 monthly toward the annual tax and insurance bills.
Related terms
Frequently asked questions
What does Escrow mean in real estate?
A neutral third party holding funds or documents until conditions are met, or a servicing account for taxes and insurance.
How is Escrow used in practice?
The escrow account collected $412 monthly toward the annual tax and insurance bills.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.