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

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.

Business

Scenario:

The buyer has signed the contract and transferred the money. The seller just needs to finalize the paperwork to close the deal.

Response:

Sounds good, so the buyer's payment is in escrow until the seller completes the paperwork.