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escrow

a neutral third party holds the money until everyone does what they promised.

20-sec readplain languagelegal

like you're 5

you and your friend are trading pokémon cards, so a trusted friend holds BOTH cards and only hands them over when you both deliver. nobody can run off mid-trade.

use it in a sentence

“our deposit sat in escrow until the sellers actually handed over the keys.”

good to know

you’ll meet escrow when renting, buying a home, or freelancing with contracts.

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