I’ve come across the term “escrow account” when reading about mortgages, property purchases, and even online transactions, but I’m still not completely sure how it works.
An escrow account is a secure holding account where a third party keeps money until both sides of a deal meet their conditions—commonly used in real estate for taxes, insurance, and buyer–seller protection.
In real estate, escrow accounts are frequently used for buyer-seller protection, insurance, and taxes. They are safe holding accounts where a third party holds funds until both parties fulfill their obligations.
