reference
glossary.
25 terms
definition
A neutral third-party account where funds are held during a real estate transaction until all conditions are met. Lenders also maintain ongoing escrow accounts to collect and pay property taxes and homeowners insurance on behalf of borrowers. This ensures important payments are made on time and protects both parties' interests.
examples
- —The buyer's earnest money was deposited into an escrow account managed by the title company until closing.
- —Mike's monthly mortgage payment includes an extra $300 that goes into his escrow account to cover property taxes and insurance.