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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.
Another common type of escrow account is an account where funds are held prior to the completion of a real estate transaction, typically by a closing attorney or title company. For the purposes of this article, we'll focus on these real estate escrow accounts.