Escrow is a legal arrangement whereby money, intellectual or other property is delivered to a neutral third party (called an escrow agent) to be held in trust pending the fulfillment of  a contract. On completion, the escrow agent will deliver the money, intellectual or other property  to the proper recipient, otherwise the escrow agent is bound by a fiduciary duty to maintain the escrow account.

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Escrow protects the interests of both buyers and sellers eliminating or reducing the risk of fraud