Escrow

Definition: Escrow is an arrangement in which money, documents, or other property is held by a third party until specified conditions are met. In brokerage, an escrow account holds money entrusted to the broker for a transaction.

Example

A buyer’s earnest-money deposit is held in escrow until it can be disbursed according to the contract and applicable requirements.

Keep the distinction clear

Mortgage escrow is a different use of the same word: a servicer collects money for expenses such as property taxes and insurance. Escrow funds are not the broker’s operating money. Use the linked lesson for Florida deposit deadlines.

Related terms

Commingling (Commingle) · Conversion (Entrusted Money or Property) · Mortgage

Keep studying

Florida Escrow Deposits: Associate and Broker Deadlines

References: DBPR: escrow and trust accounts · CFPB mortgage terms

Pronunciation (US): ES-kroh (capitals show stress)

Pronunciation reference: Merriam-Webster