Editing Escrow (section)

{{Short description|Arrangement for holding funds by a 3rd party}}
{{Use dmy dates|date=December 2024}}{{about|an escrow of money|escrows of computer source code|source code escrow}}
{{More references|date=May 2021}}
An '''escrow''' is a [[Contract|contractual]] arrangement in which a third party (the '''stakeholder''' or '''escrow agent''') receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. Examples include an account established by a [[broker]] for holding funds on behalf of the broker's [[Principal (commercial law)|principal]] or some other person until the consummation or termination of a transaction;<ref>{{cite web|url=http://www.allisonmccloskeyescrow.com/escrow-process-tips.asp|title=Escrow Process Elements & Tips|url-status=dead|archive-url=https://web.archive.org/web/20070916071430/http://www.allisonmccloskeyescrow.com/escrow-process-tips.asp|archive-date=2007-09-16}}</ref> or, a trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums. The word derives from the [[Old French]] word {{lang|fro|escroue}}, meaning a scrap of paper or a scroll of parchment; this indicated the deed that a third party held until a transaction was completed.<ref>{{cite web|url=http://www.etymonline.com/index.php?term=escrow|title=escrow - Origin and meaning of escrow by Online Etymology Dictionary|website=www.etymonline.com}}</ref>