Investor Glossary-escrow accountInvestor Glossary-escrow accountInvestor Glossary-escrow accountInvestor Glossary-escrow accountInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Escrow Account

The HTML to link to this page
 

An escrow account is an account designated to hold escrow funds. The escrow accounts purpose is to keep funds held under an escrow agreement segregated from any other account of the escrow agent. The escrow agent has fiduciary responsibility to disburse the funds in the escrow account according to the agreement. An escrow account is often used in real estate transactions. The buyer's contract deposit is held in the escrow account until closing. For example, in New York City, the seller's attorney usually handles the escrow account. That fiduciary duty to handle the escrow account legally supersedes the attorney's loyalty to the seller. Thus, the seller's attorney cannot release the buyer's funds from the escrow account to the seller before the closing. If the deal fails to close, circumstances dictate who is legally entitled to the escrow account funds. In one famous case, $2million sat in escrow throughout litigation until a judge ruled that the buyer had forfeited the funds by backing out. Escrow account interest can therefore be meaningful.



Rate this escrow account definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use