Escrow Account

Definition: An account used to hold money entrusted for another person or transaction, separate from the holder's ordinary operating funds, subject to governing rules.

Example

A broker places a buyer's deposit in the brokerage escrow account rather than the operating account.

Keep the distinction clear

A broker's trust account differs from a lender's mortgage escrow for taxes and insurance. Both involve holding funds for a designated purpose, with different rules.

Related terms

Escrow · Trust Funds · Commingling (Commingle)

Keep studying

Florida Escrow Accounts: Personal Funds and Interest-Bearing Accounts

References: Florida Statutes 475.25: discipline and escrow disputes · California DRE: real estate glossary

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

Pronunciation reference: Merriam-Webster