escrow funds
Học thuậtThân thiện
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.
Noun
- funds held in escrow