Definition

A legal arrangement where money, property, or documents are held by a third party until certain conditions are met before they are transferred to another party.

Example

The house sale was completed using an escrow to ensure that the funds were safely held until all agreements were fulfilled.

Conversation

Have you ever heard of using escrow when buying a house?

Yeah, I think it’s a way to protect both the buyer and seller, right?

Exactly! The money stays in escrow until all conditions are met.

That makes sense, it sounds like a smart way to handle big transactions.

Synonyms & Antonyms

Definition

To put something, usually money or a legal document, into a temporary holding arrangement until certain conditions are met.

Example

The buyer placed the deposit in escrow until the sale was finalized.

Tense Forms

Conversation

Did you hear about the house they escrowed last week?

Yeah, I heard it was a great deal for them!

I wonder how long the process takes once it's in escrow.

Root Explanation

Escrow originates from Old French *escroue*, meaning a scrap of paper or a roll of parchment. It refers to a document or agreement held by a third party until certain conditions are met, symbolizing the idea of holding something in trust.

Memory Tip

Think of a 'scrap of paper' ('escroue') that holds important agreements until conditions are fulfilled — that's what escrow means.

Visually Confused Words