An Escrow is a transaction, which simply means trust. It is a deposit of funds, a deed, or other instruments, to the impartial third party, to be delivered upon the fulfillment of particular conditions.
Features:
- The third party acts as a agent for seller and buyer.
- Here the escrow holder has the obligation to safeguard the funds or documents while they are in his possession.
- An escrow arrangement is similar to insurance and can give excellent protection in some circumstances.
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