Escrow definition (noun)

1. Escrow is the process by which a third party holds a certain amount of money or other assets for two parties that are involved in a transaction. This guarantees that both sides fulfill their obligations before the sale is completed. 

   Assets in escrow are held until further instructions are given or contractual obligations are completed for both the buyer and the seller. Escrow is commonly used in real estate transactions, but it can be used with any transfer of funds or assets that might involve more valuable items.