Glossary of Terms

Escrow Funds 2015-11-10 08:00:00

Escrow Funds

Capital held by a neutral entity in an account for the benefit of the parties of a financial arrangement whereby the funds are distributed only after certain contractual agreements are fulfilled. For instance, in a commercial real estate acquisition, an investor may place funds in escrow during their due diligence period with the escrow agent under instruction to apply the funds towards the purchase price upon satisfactory findings or return the funds to the investor in the event of unsatisfactory findings.