escrow account
Third-party holding
An escrow account is a financial arrangement where a third party holds funds on behalf of two transacting parties until specific conditions are met.
In real estate, an escrow account typically holds a buyer's deposit until closing, or a homeowner's funds for property taxes and insurance: The mortgage company pays our taxes from the escrow account.
The arrangement protects both parties by ensuring money is available when obligations come due.
- earnest moneyPayment showing serious intent
- down paymentInitial sum toward purchase
- closing costsFees finalizing property purchase
- closing dayLast operating day
- title companyOwnership verification business
holdback · title insurance · disbursement · contract · refinancing · settlement agreement · fiduciary responsibility · property deed · custodian · insurance policy · monthly payments · purchase agreement · foreclosure · foreclosure process · lien · lender · regulatory oversight · deed
- accountschecking, savings, 401k, IRA, Roth IRA
- mortgage termsmortgages, home loans, foreclosure, lien, interest rates
- bankingbank, banks, ATM, ATMs, accounts
- real estatehouse, home, apartment, property, sale
- reservesreserve, reserves, bank reserves, cash reserves, fuel reserve
- savingspiggy bank, online savings, savings bonds, savings plan, emergency fund
escrow accountdirect payment
Funds transferred without intermediary
wire transfer · cash on delivery · direct deposit · peer-to-peer payment · cash payment
escrow accountpetty cash
Fund for incidentals
slush fund · cash drawer · mattress money · pocket money · walking-around money
escrow accounthandshake deal
Unwritten mutual commitment
honor system · gentleman's agreement · slush fund · petty cash