Escrow

Escrow is a guarantee service that aims to secure a transaction between two parties by placing funds or assets in a reserve phase with a trusted third party. The process plays an important role in situations where trust is required between the parties and the fulfillment of certain conditions must be confirmed before funds are released.
The main purpose of escrow is to minimize risk for both parties to the transaction, protecting them from possible fraudulent practices or non-performance of contractual terms. It works by having a third party, called an “escrow agent” or “escrow commissioner,” hold the funds or assets as collateral until certain conditions in the contract are met.
Typical situations in which the escrow service is used include real estate transactions, car purchases, investment contracts, trading transactions on online platforms and the transfer of Internet domains. In the case of real estate, for example, the escrow agent holds the buyer’s funds until all the necessary documents and paperwork are completed, and then releases the funds to the seller.
The escrow process can include the exact conditions that must be met before the funds are released, such as signing documents, completing inspections or obtaining necessary permits. In this way, the escrow service helps make the transaction more secure and builds trust between the parties, which is especially important in situations where there is high risk.