escrow-service

Vocabulary Word

Definition

An 'escrow service' is a neutral third party that holds onto something of value (like money or property) during a transaction until all the conditions are met.

Examples in Different Contexts

In real estate transactions, an 'escrow service' acts as a neutral third party to securely hold funds and documents until the transaction is completed. A real estate agent might say, 'Using an escrow service ensures that the buyer's deposit is safely held until closing day, protecting both parties.'

Practice Scenarios

Startup

Scenario:

We've agreed on the investment terms. The next step is for the startup to secure the patent before funds can be released.

Response:

Upon patent confirmation, our escrow service will release the investment funds as agreed.

Accounting

Scenario:

We are releasing the funds for the new project this week. The team just needs to show the approved plans.

Response:

Indeed, the escrow service has been notified about the fund release requirement upon plan approval.