1

escrow

play
noun es·crow \ ˈe-ˌskrō , e-ˈskrō \
Updated on: 26 Jul 2017

Definition of escrow

1 :a deed, a bond, money, or a piece of property held in trust by a third party to be turned over to the grantee only upon fulfillment of a condition
2 :a fund or deposit designed to serve as an escrow
in escrow
:in trust as an escrow
  • had $1000 in escrow to pay taxes

Recent Examples of escrow from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'escrow.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Did You Know?

the form of a deed, money or property, escrow is that is held by a third party and handed over to the grantee only upon the fulfillment of some condition. In commercial usage, this condition is most often the performance of some act by the party who is to receive the instrument. Escrow is also used in family transactions (as when the death of one family member results in an instrument being delivered to another family member).

Origin and Etymology of escrow

Anglo-French escroue scroll — more at scroll


2

escrow

play
verb es·crow \ e-ˈskrō , ˈe-ˌskrō \

Definition of escrow

transitive verb
:to place in escrow

Recent Examples of escrow from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'escrow.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of escrow

1946


Financial Definition of ESCROW

escrow

What It Is

Escrow is a financial arrangement whereby a third party holds funds in safekeeping pending the completion of a contract or other obligation.

How It Works

For example, let's assume a situation where someone is purchasing a home. Instead of immediately giving the seller the purchase amount, the buyer may deposit the money into an escrow account and attach certain stipulations to the purchase agreement. These stipulations might include performing necessary repairs to the property, catching up on property taxes, or passing an inspection.

In turn, the escrow agent will not give the seller the money until they meet those requirements, and to protect the seller, the agent will not return the money to the buyer until the seller has failed to meet their obligations.

Why It Matters

Escrow protects both the buyer and the seller in a transaction by ensuring that both parties perform according to the provisions of the deal. Escrow fees are common costs associated with buying and selling houses and other real estate.


Law Dictionary

1

escrow

play
noun es·crow \ ˈes-ˌkrō \

legal Definition of escrow

1 :an instrument and especially a deed or money or property held by a third party to be turned over to the grantee and become effective only upon the fulfillment of some condition
2 :a fund or deposit designed to serve as an escrow
in escrow
:held as an escrow :in trust as an escrow
  • had $1000 in escrow to pay taxes
— compare trust

Origin and Etymology of escrow

Anglo-French escroue deed delivered on condition, literally, scroll, strip of parchment, from Old French escroe


2

escrow

transitive verb

legal Definition of escrow

:to cause to be held as an escrow :place in escrow


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