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What Is Escrow?

By Kristi Waterworth – Updated Dec 13, 2024 at 10:09AM

Key Points

  • Escrow is a secure arrangement where a third party holds assets until transaction conditions are met.
  • It's commonly used in real estate to ensure both parties meet their obligations without fraud.
  • Escrows also safeguard assets in mergers and stock-based compensation plans, ensuring compliance.
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