# escrow

/ˈɛskɹoʊ/ (US) · /ˈɛskɹəʊ/ (UK)

Source: https://englishreference.com/word/escrow
Updated: 2026-08-27

## Senses

### 1. legal arrangement

noun · CEFR C1 · Technical

a legal agreement where a neutral person or company holds money until both sides of a deal do what they promised.

For teachers: 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.

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.

### 2. the held assets

noun · CEFR C1 · Technical

the actual money or property that is being held by a third party during a deal.

For teachers: 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.

Usage: Can be used as a countable or uncountable noun depending on whether it refers to the specific fund or the general assets.

### 3. to place in trust

verb · CEFR C1 · Technical · Formal

to put money or documents into a special account held by a neutral third party.

For teachers: 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.

Usage: This verb is transitive and requires a direct object, usually the asset being held.

## Examples

- The buyer put the deposit into escrow.
- During the home-buying process, the funds are typically held in escrow until all inspections are completed and the final contract is signed.
- To mitigate risk in the international trade agreement, both corporations agreed to use an independent escrow agent to manage the transfer of intellectual property rights and the corresponding payments.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.