Definition of Escrow Account



The escrow accounts are the accounts where two parties in contractual terms held their funds in trust to complete a transaction. Those funds then disbursed to the third party after fulfilling the escrow agreement. This disbursement is dependent on the terms agreed by the transacting parties.

 


The third-party is allowed to hold assets on behalf of two parties who have done the transaction earlier. The escrow account is also known as third party account.

 

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