Escrow
Updated 04/29/2024

An escrow is a legal arrangement in which a third party temporarily holds vast sums of money or property until a specific condition is met (such as the fulfillment of a purchase agreement). An escrow is used in real estate transactions to safeguard both the buyer and seller during the house purchase process. An escrow account will keep funds for taxes and homeowner’s insurance during the life of the mortgage.

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