|escrow (ˈɛskrəʊ, ɛˈskrəʊ)|
|1.||money, goods, or a written document, such as a contract bond, delivered to a third party and held by him pending fulfilment of some condition|
|2.||the state or condition of being an escrow (esp in the phrase in escrow)|
|3.||to place (money, a document, etc) in escrow|
|[C16: from Old French escroe, of Germanic origin; see |
The condition of being ineffective until certain conditions are met. For example, money inherited by a minor might be held in escrow until the heir reaches a certain age. Homeowners with mortgages frequently pay money for insurance and taxes on their home into an escrow account each month. The holder of the mortgage then pays the insurance and tax bills out of the escrow account when the bills are due.
In trust with a third party for delivery after certain conditions are fulfilled. For example, Our down payment on the house is in escrow until the current owner makes the promised repairs. This legal term dates from the late 1800s.