Definition - What does Escrow mean?
Escrow is a term that refers to the holding of funds or other important documents of a deal by a recognized and neutral third party. This third party can be in the form of an agent or a company. The main function of an escrow agent or a company is to facilitate the selling and buying of goods or exchange of services between two parties.
Justipedia explains Escrow
This can be explained with a common example of a real estate escrow agent. People who buy or sell real estate usually hire the services of an escrow agent, who facilitates the deal and transfer. Sometimes, simple business sales also involve an escrow arrangement. This is usually seen in online businesses.