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


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