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

1. funds held in escrow