What is an escrow service?

Escrow services are third-party services that hold funds, documents, or other assets on behalf of two parties involved in a transaction until certain conditions are met. The escrow provider acts as a neutral intermediary to ensure that both parties fulfill their contractual obligations before the assets are released. This process adds an extra layer of security and trust, commonly used in real estate transactions, online sales, and mergers or acquisitions. Escrow services help prevent fraud and protect both buyers and sellers during complex or high-value transactions.