Glossary: Escrow

Generally refers to money held by a third-party on behalf of two other transacting parties. In the UK, escrow accounts are often used during private property transactions to hold solicitors’ clients’ money, such as deposits, until such time as the transaction completes. Payments for goods sold on eBay are technically held in escrow: buyers pay sellers via eBay and, until both parties are satisfied with the transaction, eBay has the power to demand payment from the buyer, take their money from the seller and refund it back to the buyer. The word derives from the Old French word escroue, meaning a scrap of paper or a roll of parchment.

Relevant to: Buying

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