What is escrow and how does it work?
In: Economics
In most contexts, it means holding someone else’s money in an account you own or someone holding your money in their account.
Usually, there are rules requiring that people holding funds in escrow have a specific account for that purpose at the bank, as opposed to keeping it in the same account that they use to run their business.
Escrow accounts are often used by lawyers, accountants, real estate brokers, and others who handle people’s money.
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