Escrow
An asset or money held by a third party on behalf of two other parties whom are in the process of completing a transaction.
- Example : Scott makes a down payment of $35,000 for the purchase of Marge’s property. Marge’s attorney, Gulotta & Gulotta, PLLC, will hold this $35,000 payment in an escrow account. The $35,000 will only be released according to the terms of the real estate contract, either to Marge at closing or refunded to Scott if Marge fails to perform her obligations under the contract.
