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For escrows of computer source code, see source code escrow. An escrow is: 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, or.
At its essence, escrow is the process whereby parties to the transfer or financing of real. estate deposit documents, funds, or other things of value with a neutral and. disinterested third party (the escrow agent), which are held in trust until a specific event.