Money & Law
escrow
Computer-generated voice, not a recording. It may differ from the pronunciation guide.
IPA is the General American pronunciation listed by Wiktionary.
In short
Escrow is an arrangement where money or property is held by a neutral third party until the conditions of a deal have been met.
It also names the money or property being held.
01 Meaning
What does escrow mean?
The third party in an escrow arrangement is called an escrow agent or stakeholder. It holds and distributes the money or property for both sides, and releases it only when the conditions they agreed to are met. If the parties disagree, a dispute process decides where the funds go.
Escrow is most familiar from housing. In the United States, a mortgage escrow account sets aside part of each payment for property taxes and insurance, and a closing escrow holds documents and funds until a sale is complete. Online escrow services work on the same idea, holding a buyer’s payment until the seller delivers.
As a verb, to escrow something means to place it in escrow.
02 Word origin
Where does it come from?
Escrow came into English from the Law French escrowe, which comes from Old French escroe, "a scrap of parchment, a scroll". The term described a deed that a third party held until a transaction was complete. The Old French word goes back to a Frankish word for "piece", and it is a distant cousin of the English word shred.
03 In context
How to use it in a sentence
“The buyer's deposit stays in escrow until the inspection is finished.”
“Part of every mortgage payment goes into an escrow account for property taxes.”
Sources and updates
- escrow, Cambridge Dictionary. Checked October 20, 2026.
- escrow - Origin and history, Online Etymology Dictionary. Checked October 20, 2026.
- escrow, Wiktionary. Checked October 19, 2026.
- Escrow, Wikipedia. Checked October 19, 2026.
Definitions and examples are written in our own words from the sources above. Published . Updated .