oboloo Glossary

Escrow Agreement

oboloo Glossary

Escrow Agreement

An Escrow Agreement is a legally-binding contract between two or more parties that outlines the responsibilities, rights and obligations of each party. It typically involves putting payments, funds, stocks or some other asset into the care of a neutral third party known as an escrow agent until certain conditions are met and the transaction can be executed accordingly. This helps to ensure fairness in the transaction while protecting all parties involved. The Escrow Agreement provides a clear set of rules and regulations concerning how the transaction will be conducted and helps to provide security and peace of mind during the process.