What Is Escrow?
A neutral third-party account that holds funds until contract conditions are met.
Detailed Explanation
Used in high-value or high-risk transactions to protect both buyer and seller. Funds are released when agreed milestones or deliverables are verified.
Example
A freelance developer's $20k project fee is held in escrow and released upon final delivery approval.
Why It Matters
Reduces payment risk for both parties on large or unfamiliar deals.
Related Resources
Related Payment Terms Terms
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