An escrow account is a contractual arrangement in which a neutral third party, known as an escrow agent, receives and disburses funds for transacting parties (i.e., a home buyer and seller).
Using escrow, buyers get to inspect the goods or services before accepting them, protecting the buyer. Likewise, sellers are protected from counterparty risk by no chargeback, ever.
At its core, escrow is a legal arrangement in which a neutral third party holds assets on behalf of other parties who are in the process of completing a transaction. These third parties ensure that both buyer and seller meet the agreed-upon conditions before any money or property changes hands.
In real estate, escrow is a legal arrangement where a neutral third party (usually an escrow officer or company) holds important items until the deal officially closes. These items can include...