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Escrow

An arrangement where a neutral third party holds funds or documents until specified conditions are met. Commonly used in real estate transactions to hold earnest money and closing funds.

Used in these documents:

Home Purchase AgreementContract For Deed

Related Terms:

Earnest Money

A deposit made by a buyer to demonstrate serious intent to purchase property. It is held in escrow and applied to the purchase price at closing, or returned if the deal falls through under contract terms.

Disclaimer

This definition is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for specific guidance.