Escrow
Real estateGlossary term
Definition
A financial arrangement where a third party holds and regulates payment of funds required for two parties in a transaction. Commonly used in real estate transactions and mortgage payments.
Related terms
- MortgageA loan used to purchase real estate where the property serves as collateral. The borrower makes regular payments over a set term (typically 15-30 years) until the loan is paid off.
- Property TaxAn annual tax levied by local governments on real estate based on the assessed value of the property. Rates vary by location and fund local services like schools, roads, and emergency services. Often paid through mortgage escrow accounts.
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