A financial agreement in which a third party controls the money and property of two transacting parties and only releases both when all of the terms of a given contract are met is known as an escrow.
An escrow service holds money, paperwork, or other assets for a transaction on behalf of the parties involved.
An escrow provider should be a neutral third party who is unconcerned about whether the buyer or seller wins the agreed-upon transaction.

Escrow is a secure financial arrangement that uses a neutral third party to hold money or valuable assets until both sides of a transaction have fulfilled their obligations. It serves as a safeguard by preventing either party from accessing the funds too early. Escrow is commonly used in real estate sales, online business transactions, vehicle purchases, and other agreements involving substantial value. During a property sale, for example, the buyer deposits the purchase amount into an escrow account while inspections, title verification, and legal documentation are completed. Once all agreed-upon conditions are met, the escrow agent releases the funds to the seller. If the transaction cannot be completed, the escrow agreement explains how the funds will be returned or distributed. Escrow helps reduce fraud, encourages trust, and supports smoother transactions. Before using an escrow service, it is wise to understand its costs, responsibilities, and contractual procedures.