Escrow

Photo by Annie Spratt
What is Escrow?

Escrow is where money is held by a trusted intermediary between parties that are in the process of completing a transaction.

Escrow accounts might include fees for agents who hold the funds or assets until receiving appropriate instructions, or until the fulfilment of predetermined contractual obligations. Money, securities, funds, and other assets can all be held in escrow.

KEY TAKEAWAYS

  • Escrow is the use of a third party, which holds an asset or funds before they are transferred from one party to another.
  • The third-party holds the funds until both parties have fulfilled their contractual requirements.
  • Escrow is often associated with property transactions. Although, it can apply to any situation where funds will pass from one party to another.
  • With property, escrow can be used when purchasing a home, but can also be for the life of a mortgage.
  • Online escrow has been on the rise as a way to offer secure transactions for high-ticket items. This might include items such as art or jewellery or where a merchant is actually drop=shipping products for another party.

Please contact us to find out more about escrow services.