a written agreement (or property or money) delivered to a third party or put in trust by one party to a contract to be returned after fulfillment of some condition
"The buyer and seller placed the purchase funds into escrow so that the money would only be released once the home inspection was approved."
A written instrument, such as a deed, temporarily deposited with a neutral third party (the escrow agent), by the agreement of two parties to a valid contract. The escrow agent will deliver the document to the benefited party when the conditions of the contract have been met. The depositor has no control over the instrument in escrow.
"Before signing the final sale, the buyer placed the deed into escrow with a neutral attorney to ensure it would only be released once all loan conditions were satisfied."
In plain English: Escrow is when money or important documents are held by a neutral third party until everyone involved agrees that everything has been done correctly before anyone gets their stuff back.
"The lawyer held all the money in escrow until both parties signed the final papers."
Usage: Use this term specifically for funds or documents held by an impartial third party during a transaction; avoid confusing it with general storage or safekeeping. It is standard in legal and real estate contexts but rarely used casually outside these professional settings.
To place in escrow.
"The lawyer agreed to place the down payment in escrow until the title search was completed."
The word "escrow" entered English via Law French as a term for a register or piece of parchment. Its ultimate roots lie in Germanic languages, where it originally referred to something that had been shredded into pieces.