Definition of Escrow agreement:
An escrow agreement is a contract that outlines the terms and conditions between parties involved, and the responsibility of each. Escrow agreements generally involve an independent third party, called an escrow agent, who holds an asset of value until the specified conditions of the contract are met. However, they should fully outline the conditions for all parties involved. .
Document issued by a bank to certify that the securities or other assets listed in it are on deposit with the bank.
Document that lays down the conditions (or describes the event) upon fulfillment of (or occurrence) of which the escrow agent delivers the asset or document held in trust by him or her to the named second-party or beneficiary.
In an escrow agreement, one party—usually a depositor—deposits funds or an asset with the escrow agent until the time that the contract is fulfilled. Once the contractual conditions are met, the escrow agent will deliver the funds or other assets to the beneficiary. Escrow agreements are commonly used in different financial transactions—especially those that involve significant dollar amounts such as real estate or online sales.
How to use Escrow agreement in a sentence?
- Agreements usually involve an independent third party called an escrow agent, who holds an asset until the contract's conditions are met.
- The escrow agreement generally includes, but is not limited to, information about the escrow agent's identity, the funds in escrow, and the acceptable use of funds by the agent.
- Escrow agreements are commonly used in real estate transactions.
- An escrow agreement is a legal document outlining terms and conditions between parties as well as the responsibility of each.
Meaning of Escrow agreement & Escrow agreement Definition