Escrow: meaning, definitions and examples
๐ผ
escrow
[ หษs.kroส ]
financial transaction
Escrow is a financial arrangement where a third party temporarily holds money or property until a particular condition is met. Typically used in real estate transactions, the funds are held in escrow to ensure that the buyer and seller meet the agreed-upon terms of the transaction. Once the conditions are satisfied, the escrow agent releases the funds to the seller. This process adds a layer of security and trust for both parties involved.
Synonyms
escrow account, safekeeping, trust
Examples of usage
- The buyer deposited the down payment into an escrow account.
- The escrow agent verified the documents before closing the deal.
- Funds will be held in escrow until the property inspection is completed.
Translations
Translations of the word "escrow" in other languages:
๐ต๐น depรณsito em garantia
๐ฎ๐ณ เคเคธเฅเคเฅเคฐเฅ
๐ฉ๐ช Treuhand
๐ฎ๐ฉ escrow
๐บ๐ฆ ะตัะบัะพั
๐ต๐ฑ escrow
๐ฏ๐ต ใจในใฏใญใผ
๐ซ๐ท escrow
๐ช๐ธ escrow
๐น๐ท escrow
๐ฐ๐ท ์์คํฌ๋ก
๐ธ๐ฆ ุญุณุงุจ ุงูุฃู ุงูุฉ
๐จ๐ฟ escrow
๐ธ๐ฐ escrow
๐จ๐ณ ็ฌฌไธๆนไฟ็ฎก
๐ธ๐ฎ escrow
๐ฎ๐ธ escrow
๐ฐ๐ฟ ััะบัะพั
๐ฌ๐ช แแกแแ แ
๐ฆ๐ฟ escrow
๐ฒ๐ฝ escrow
Etymology
The term 'escrow' originates from the Old French word 'escroue', which means 'a scrap of paper' or 'a written deed'. This term reflected the practice of using a physical document as a form of security. Its use can be traced back to the definition of the term by the 14th century when it began to be associated more closely with transactions involving money and property. As legal standards developed, the concept of escrow evolved to include the involvement of a neutral third party, known as an escrow agent, who manages the terms of a transaction. The modern legal framework in which escrow operates primarily took shape in the 19th century, further solidifying its role in the sale of real estate and other significant financial agreements. Today, escrow is a widely accepted practice in various fields to enhance security and mitigate risks associated with transactions.