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In Escrow

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An item of value is in escrow when that item is transferred to a third party (an escrow agent) for delivery to the grantee only upon the fulfillment of pre-specified conditions (after transference the item is no longer in escrow). Items commonly held in escrow include money, property, a deed, or a bond. 'In escrow' is most commonly used in real estate transactions (buyers and sellers talk about their homes being in escrow). The term 'in escrow' is used during the home buying/selling process when the home title, the buyer's purchase money, and any other money (e.g., for repairs) are held in escrow. These items are no longer in escrow once they're transferred to the appropriate parties. Items of value can be held in escrow in other cases, too (e.g., the term 'in escrow' is used in online auctions where a buyer's money may be held in escrow until the purchaser receives the item).



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