An agreement in which a neutral third party (escrow agent) is designated to receive, hold, and disburse funds and/or property for the contracting parties until certain contractual conditions are met.
Escrow agreements are most commonly used in real estate transactions, but can also be used in the construction industry to safeguard construction loan funds or payments withheld as retainage on construction projects; to name a few. In fact, many states either require or provide the option to deposit retainage into an escrow account under their prompt payment laws.
Also seen as
- Escrow Agreement
- Escrow Account