real estate

escrow

A financial arrangement where a third party holds funds or assets until a transaction is complete.

Example

"During the home purchase, $5,000 was held in escrow until the inspection was completed."

💡 Memory Tip

ES-crow — imagine a crow (third party) holding your money in its nest until the deal is done.

Etymology

From Old French 'escroe' meaning 'scrap of paper, scroll' — the document held by a third party.

Common Misspellings

escroescrowescroeiscrowescrou

Related Terms

mortgagereal estate

See Also

closing coststitle

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