An Escrow is a transaction, which simply means trust. It is a deposit of funds, a deed, or other instruments, to the impartial third party, to be delivered upon the fulfillment of particular conditions.

Features:

1. The third party acts as a agent for seller and buyer.
2. Here the escrow holder has the obligation to safeguard the funds or documents while they are in his possession.
3. An escrow arrangement is similar to insurance and can give excellent protection in some circumstances.

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