June 1, 2018Mike Kappel
An escrow is the holding of money or other valuables by a trusted third party until a transaction is completed by two parties (usually a buyer and a seller or a borrower and lender).
An escrow account is commonly used in real estate transactions, but it can also be used by small business owners to safeguard transactions such as a large sale. When an escrow is established, an escrow agent or officer is responsible for the completion of any contract specifics and maintaining detailed records. When all tasks are completed and parties are satisfied, the escrow agent closes the escrow and final papers are signed as funds and ownership change hands.