1. Home
  2. Autos
  3. Used Cars

Definition of Escrow

By Keith Griffin, About.com

Definition:

ESCROW: As explained by SoveriegnBank.com, it is money, property, a deed, or a bond put into the custody of a third party for delivery to a grantee only after the fulfillment of the conditions specified. In plain English, a buyer would pay a third party to hold onto money to make sure the seller delivers the car. Using escrow also avoids checks that don’t clear and other financial difficulties.

Explore Used Cars
About.com Special Features

Stay safe and save time by following these tips before driving a used car. More >

Discover the hottest cars for the 2010 calendar year. More >

  1. Home
  2. Autos
  3. Used Cars
  4. Glossary
  5. Glossary A to E
  6. Definition of Escrow

©2009 About.com, a part of The New York Times Company.

All rights reserved.