Finance & Moneyadvanced
Escrow
Definition
A neutral holding account where money sits safely until both sides of a deal have done their part, then it is released.
Why it matters
Escrow protects you in larger deals by making sure you are paid once you deliver, and that the other party gets what they paid for, reducing the risk of being cheated.
Example
When buying a website, the funds sit in escrow until the seller transfers the files, then the money is released to them.
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