What are escrow accounts?
In: Other
I don’t trust you. You don’t trust me. But we want to make a deal with a bunch of money involved, maybe.
Luckily we both trust a third party. You take the bunch of money and give it to the third party to hold on to until I do the thing. When I do the thing that third party will give me the money so you can’t back out, and if I don’t do the thing the third party gives you your money back so I can’t run off with it.
That money deposited with the third party is “escrow”, and when it is organized into an account it is an “escrow account”.
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