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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.
escrow-Investment & Finance Definition. An account that holds money or securities until some agreed upon event or condition is met. Escrows typically are used when purchasing a home. The down payment, or good faith deposit, goes into an escrow account and is held until the funds are disbursed to the seller at closing.