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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.

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