Escrow

Escrow is a financial instrument belonging to a third party on behalf of a buyer and a seller. Once funds have been exchanged between two parties, they are held by the escrow service until all obligations have been fulfilled. For example, lender funds are held in escrow or by an escrow service, typically a solicitor’s trust account, until the mortgage is ready to settle, and funds advanced to the borrower for the commencement of the mortgage.