Escrow
A neutral account that holds deposits, the purchase price, and sometimes a holdback until closing conditions are met.
Last updated September 5, 2026
An escrow or closing agent (often a title company or attorney) receives the buyer’s earnest money and the loan proceeds, then disburses according to the purchase agreement. Escrow instructions list payoffs, lien releases, and who receives each wire. Holdbacks may remain in escrow after the business has transferred. “In escrow” means the deal is in process, not that it has closed.