escrow funds

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escrow funds

The buyer deposits the escrow funds with a trusted third party.

Definition

Noun: - Funds held in escrow: Money or financial assets that are deposited with and held by a neutral third party (an escrow agent) until specific conditions of a contract or agreement are fulfilled by the involved parties. The funds are not under the control of either party until the agreed-upon event occurs.

Usage
  • General Use: The term is used in legal, financial, and real estate contexts to describe money that is temporarily held in a secure, impartial account.
  • Key Concept: The defining characteristic is that the funds are in a state of suspension, controlled by the escrow agent, pending the completion of contractual obligations.
Examples
  • Noun:
    • The buyer deposited the escrow funds with the title company until the home inspection was complete.
    • The software company released the escrow funds to the developer only after the final code was delivered and approved.
Advanced Usage
  • "to place funds in escrow": The act of depositing money into an escrow account.
    • The parties agreed to place the deposit in escrow until the dispute was resolved.
  • "release of escrow funds": The process where the escrow agent disburses the money to the designated party upon fulfillment of conditions.
    • The release of escrow funds was authorized after all contractual milestones were met.
Variants and Related Words
  • Escrow (n): The arrangement or agreement itself, or the state of being held by a third party.
    • The deed was held in escrow.
  • Escrow Agent / Escrow Holder (n): The neutral third party responsible for holding the escrow funds.
  • Escrow Account (n): The specific bank account where escrow funds are deposited.
Synonyms
  • Impounded funds
  • Trust funds (in a specific legal/escrow context)
  • Held deposits
Related Phrases
  • In escrow: Describing the status of funds, documents, or property being held under an escrow agreement.
    • The contract is in escrow.
  • Close escrow: To complete the escrow process, typically resulting in the release of funds and transfer of property title.
    • We expect to close escrow on the house next Friday.
escrow funds

The buyer deposits the escrow funds with a trusted third party.

Noun
  1. funds held in escrow