escrow accounts
Third-party holding
Escrow accounts are funds held by a third party on behalf of two others during a transaction.
In real estate, a buyer deposits money into escrow until closing conditions are met.
Mortgage lenders maintain escrow accounts to collect monthly payments for property taxes and insurance, paying these bills on the homeowner's behalf.
The title company held the deposit in escrow until the inspection was complete.
- trust accountsAssets managed for beneficiaries
- closing costsFees finalizing property purchase
- title insuranceCoverage against ownership defects
- custodial accountsAssets managed for minors
- fiduciary dutyObligation to act loyally
dispute resolution · fraud prevention · holdback · holding period · earnest money · payment schedules · disbursement · security deposits · impound · contract enforcement · deposit accounts · neutral party · property taxes · insurance premiums · regulatory oversight · legal compliance · notary · custodian
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- liabilitiesaccounts payable, tax liability, payables, short-term debt, long-term debt
- development financedevelopment projects, infrastructure funding, grant funding, World Bank, IMF
- investment visasinvestor visa, minimum investment, capital requirements
escrow accountsdirect payment
Funds transferred without intermediary
cash on delivery · peer-to-peer payment · wire transfer · direct deposit · cash payment
escrow accountschecking accounts
Accessible bank funds
petty cash · accessible funds · personal accounts · cash in hand · cash reserves
escrow accountshonor system
Trust-based compliance without supervision
handshake deal · gentleman's agreement · verbal agreement · cash-and-carry