Definition of 'Escrow Agreement'
A legal documents that outlines the terms and conditions between parties involved in an escrow. An escrow agreement defines the arrangement by which one party deposits an asset with a third person (called an escrow agent), who will in turn make delivery to another party if and when the specified conditions of the contract have been met.
It includes such information as language specifying the appointed escrow agent, and specific sections for each of the following: descriptions of any definitions pertinent to the agreement, the escrow fund and release of funds, and the acceptable use of funds by the escrow agent, the duties and liabilities of the escrow agent, the escrow agent's fees and expenses, and the jurisdiction and venue in the event of a legal action.
Investopedia explains 'Escrow Agreement'
An escrow agreement can also refer to a bank-issued document that certifies that the specified securities or assets are deposited at the particular bank. Examples of deposited assets include money, contracts, deeds, bonds or other property or instruments.