Word
escrow
Phoneticses·crow
US/ˈɛskɹoʊ/
UK/ˈɛskɹəʊ/
Definitions
01legal arrangement
n. a legal agreement where a neutral person or company holds money until both sides of a deal do what they promised.
n. a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.
“The buyer put the deposit in escrow until the house inspection was finished.”
“The funds were held in escrow by a neutral law firm to ensure that the seller met all environmental compliance standards before the final transfer.”
Technical
Usage
Commonly used in the phrase 'in escrow'.
Teaching tip
This is a high-frequency term in real estate and online commerce; students should understand it as a safety mechanism for large transactions.
Synonyms
02the held assets
n. the actual money or property that is being held by a third party during a deal.
n. the specific assets, funds, or instruments held under the terms of an escrow agreement.
“Once the contract was signed, the escrow was released to the seller.”
“The total escrow amounted to five million dollars, which remained untouched until the merger was officially approved by the regulatory board.”
Technical
Usage
Can be used as a countable or uncountable noun depending on whether it refers to the specific fund or the general assets.
03to place in trust
v. to put money or documents into a special account held by a neutral third party.
v. to deposit assets or documents into an escrow account or with an escrow agent.
“The company agreed to escrow the funds until the software was delivered.”
“The court ordered the defendant to escrow the disputed royalties while the patent litigation proceeded to trial.”
Technical · Formal
Usage
This verb is transitive and requires a direct object, usually the asset being held.
Etymology
Learned borrowing from Law French escrowe, from Old French escroe (“register, note; bit of parchment; piece”), from Frankish skrōda (“piece”), from Proto-Germanic skraudō, derivative of Proto-Germanic *skraudaną (“to shred”). Doublet of scrow and shred and partially scroll.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Domain
Scan code
englishreference.com/q/escrow