Escrow is a financial arrangement where a neutral third party, known as the escrow agent, securely holds funds, documents, or property on behalf of the other parties involved in a transaction. The escrow agent ensures that all conditions of the transaction, as agreed upon by the parties (buyers, sellers, lenders, etc.), are met before releasing any funds, documents, or property. This process helps protect all parties involved by providing a transparent, secure, and efficient way to manage the transfer of assets during transactions, especially in real estate. Escrow is used to ensure that no property or money changes hands until all of the terms of an agreement are fulfilled, reducing the risk of fraud or mismanagement​​.