Dictionary of Law
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escrow :: legal definition


Escrow - 1) n. a form of account held by an "escrow agent" (an individual, escrow company or title company) into which is deposited the documents and funds in a transfer of real property, including the money, a mortgage or deed of trust, an existing promissory note secured by the real property, escrow "instructions" from both parties, an accounting of the funds and other documents necessary to complete the transaction by a date ("closing") agreed to by the buyer and seller. When the funding is complete and the deed is clear, the escrow agent will then record the deed to the buyer and deliver funds to the seller. The escrow agent or officer is an independent holder and agent for both parties who receives a fee for his/her/its services. 2) n. originally escrow meant the deed held by the escrow agent. 3) n. colloquially, the escrow agent is called an "escrow," while actually the escrow is the account and not a person. 4) v. to place the documents and funds in an escrow account, as in: "we will escrow the deal."

See also: escrow agent and Related Law Terms ↓


Related Law Terms

abstract of judgment :: n. a written summary of a judgment which states ho ... aying the debt. See also: levy lien
abstract of title :: n. the written report on a title search which show ... e also: chain of title title report
acknowledgment :: n. the section at the end of a document where a no ... me leases and various other papers.
after-acquired property :: n. 1) personal or real property acquired by a debt ... lso: bankruptcy secured transaction
agency :: n. the relationship of a person (called the agent) ... ondeat superior scope of employment
apparent authority :: n. the appearance of being the agent of another (e ... e also: agency ostensible authority
appurtenant :: adj. pertaining to something that attaches. In rea ... t. See also: easement real property
assess :: v. to set a value on property, usually for the pur ... e place upon sale of real property.
assume :: v. to take over the liability for a debt on a prom ... he assumption. See also: assumption
attachment :: n. the seizing of money or property prior to getti ... bond. See also: writ of attachment
attorney-in-fact :: n. someone specifically named by another through a ... cument. See also: power of attorney
bank :: n. 1) an officially chartered institution empowere ... erred to as "in bank" or "en banc."
bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
bilateral contract :: n. an agreement in which the parties exchange prom ... also: contract unilateral contract
breach of warranty :: n. determination that a statement as to title of p ... See also: implied warranty warranty
chain of title :: n. the succession of title ownership to real prope ... title conveyance foreclosure title
closing :: n. the final step in the sale and purchase of real ... company, escrow holder or attorney.
cloud on title (cloud) :: n. an actual or apparent outstanding claim on the ... ion reconveyance title title report
collateral :: 1) n. property pledged to secure a loan or debt, u ... ral to the Colorado divorce action.
color of title :: n. the appearance of having title to personal or r ... rty based on this "color of title."
commingling :: n. the act of mixing the funds belonging to one pa ... rust accounts for funds of another.
community property :: n. property and profits received by a husband and ... and distribution separate property
condition precedent :: n. 1) in a contract, an event which must take plac ... o the property. See also: condition
condition subsequent :: n. 1) in a contract, a happening which terminates ... Dad Fauntleroy. See also: condition
convey :: v. to transfer title (official ownership) to real ... ion conveyance deed grantee grantor
conveyance :: n. a generic term for any written document which t ... r Recorder of Deeds. See also: deed
covenant :: 1) n. a promise in a written contract or a deed of ... o compete deed restrictive covenant
deed :: 1) n. the written document which transfers title ( ... veyance deed of trust warranty deed
deed of trust :: n. a document which pledges real property to secur ... : foreclosure mortgage reconveyance
defect :: n. an imperfection, quite often so great that the ... See also: defective defective title
delivery :: n. the actual handing to another of an object, mon ... rties. See also: contract deed sale
demise :: 1) v. an old-fashioned expression meaning to lease ... r life. 3) n. death. 4) n. failure.
devise :: 1) v. an old-fashioned word for giving real proper ... so: bequest gift legacy remise will
devisee :: n. a person who receives a gift of real property b ... will. See also: beneficiary legatee
divorce :: 1) n. the termination of a marriage by legal actio ... y separate property spousal support
easement :: n. the right to use the real property of another f ... rstandings at the time of creation.
encumbrance :: (incumbrance)n. a general term for any claim or li ... and must be paid for at some point.
escrow agent :: n. a person or entity holding documents and funds ... on local practice. See also: escrow
escrow instructions :: n. the written instructions by buyer and seller of ... ir agents. See also: closing escrow
exchange :: 1) v. to trade or barter property, goods and/or se ... ins tax. See also: delayed exchange
execute :: v. 1) to finish, complete or perform as required, ... ishment contract executed execution
execution :: n. 1) the act of getting an officer of the court t ... so: death penalty writ of execution
fictitious defendants :: n. when a party suing (plaintiff) is not sure if h ... are not permitted in federal cases.
foreclosure :: n. the system by which a party who has loaned mone ... ced sale mortgage notice of default
foreclosure sale :: n. the actual forced sale of real property at a pu ... dicial sale mortgage sheriff's sale
fraud :: n. the intentional use of deceit, a trick or some ... audulent conveyance intrinsic fraud
free and clear :: adj. referring to the ownership of real property u ... the title has no claim against it.
garnish :: v. to obtain a court order directing a party holdi ... ed. See also: garnishee garnishment
grant :: v. to transfer real property from a title holder ( ... deed grantee grantor quitclaim deed
grant deed :: n. the document which transfers title to real prop ... rant grantee grantor quitclaim deed
grantor-grantee index :: n. a set of books and/or computerized lists found ... ument in tracking a chain of title.
indenture :: n. a type of real property deed in which two parti ... bind a person to work for another.
injunction :: n. a writ (order) issued by a court ordering someo ... t. See also: injunctive relief writ
inspection of documents :: n. the right to examine and copy the opposing part ... evidence subpena duces tecum trial
insurance :: n. a contract (insurance policy) in which the insu ... t clause Workers' Compensation Acts
interest :: n. 1) any and all, partial or total right to prope ... nal property real property standing
interlineation :: n. the act of writing between the lines of a docum ... document re-typed and then signed.
joint tenancy :: n. a crucial relationship in the ownership of real ... ty property tenancy in common title
judicial foreclosure :: n. a judgment by a court in favor of foreclosure o ... deed of trust foreclosure mortgage
land :: n. real property, real estate (and all that grows ... See also: real estate real property
lease :: 1) n. a written agreement in which the owner of pr ... triple net lease unlawful detainer
leasehold :: n. the real estate which is the subject of a lease ... sehold. See also: condominium lease
legatee :: n. a person or organization receiving a gift of an ... eficiary devise devisee legacy will
leverage :: 1) n. the use of borrowed money to purchase real e ... e been created by risky leveraging.
lien :: n. any official claim or charge against property o ... ord's lien mechanic's lien mortgage
life estate :: n. the right to use or occupy real property for on ... hter, Sadie, will own the property.
lis pendens :: (lease pen-dense) n. Latin for "a suit pending," a ... ob can be penalized by court order.
marketable title :: n. the title to real property which has no encumbr ... e. See also: contract real property
mechanic's lien :: n. the right of a craftsman, laborer, supplier, ar ... ll sue for the debt. See also: lien
merger :: n. 1) in corporate law, the joining together of tw ... and taking one, and wife the other.
mortgage :: n. a document in which the owner pledges his/her/i ... losure notice of default trust deed
nominal party :: n. a defendant or a plaintiff included in a lawsui ... ed. See also: necessary party party
nominee :: n. 1) a person or entity who is requested or named ... ic office. See also: agent executor
notice :: n. 1) information, usually in writing in all legal ... Thirty-day notice three-day notice
ostensible agent :: n. a person who has been given the appearance of b ... rent authority ostensible authority
personalty :: n. movable assets (things, including animals) whic ... lso: personal effects real property
possessory interest :: n. in real estate, the intent and right of a perso ... o: possess possession real property
possibility of a reverter :: n. the potential that the title to a real property ... further issue. See also: reversion
power of attorney :: n. a written document signed by a person giving an ... y, as in a real estate transaction.
privity :: n. contact, connection or mutual interest between ... with the seller. See also: contract
property :: n. anything that is owned by a person or entity. P ... rty real property separate property
property tax :: n. an annual governmental tax on real property or ... are made. See also: ad valorem tax
quiet title action :: n. a lawsuit to establish a party's title to real ... opposition. See also: notice title
quitclaim deed :: n. a real property deed which transfers (conveys) ... also: convey deed grant deed title
real estate :: n. land, improvements and buildings thereon, inclu ... the future. See also: real property
real estate investment trust :: n. nicknamed REIT, a real estate investment organi ... its upon sale-if there is a profit.
real party in interest :: n. the person or entity who will benefit from a la ... st is the beneficiary of the trust.
real property :: n. 1) all land, structures, firmly attached and in ... onal property real estate reversion
receiver :: n. 1) a neutral person (often a professional trust ... owing they were obtained illegally.
reconveyance :: n. in those states which use deeds of trust as a m ... conveyance. See also: deed of trust
record :: 1) v. (ree-cored) to put a document into the offic ... eeding race to the courthouse trial
reformation :: n. the correction or change of an existing documen ... neral partner sues for reformation.
remainder :: n. in real property law, the interest in real prop ... ed reversion title vested remainder
restraint on alienation :: n. an attempt in a deed or will to prevent the sal ... enant rule against perpetuities use
restrictive covenant :: n. 1) an agreement included in a deed to real prop ... o: covenant that runs with the land
reversion :: n. in real property, the return to the grantor or ... lled "reverter." See also: reverter
risk :: n. chances of danger or loss, particularly of prop ... so: assumption of risk risk of loss
rule against perpetuities :: n. the legal prohibition against tying up property ... . See also: restraint on alienation
satisfaction of judgment :: n. a document signed by a judgment creditor (the p ... ord. See also: abstract of judgment
savings and loan :: n. a banking and lending institution, chartered ei ... vings into the home finance market.
subject to :: adj. referring to the acquisition of title to real ... : assumption deed of trust mortgage
subpena duces tecum :: : (suh-pea-nah dooh-chess-take-uhm or dooh-kess-ta ... ng a court order. See also: witness
subrogee :: n. the person or entity that assumes the legal rig ... aid. See also: subrogation subrogor
substitution of attorney :: n. a document in which the party to a lawsuit stat ... t any time. See also: substitute in
title :: n. 1) ownership of real property or personal prope ... ink slip real property title search
title insurance :: n. a policy issued by an insurance company guarant ... : chain of title title title search
title report :: n. the written analysis of the status of title to ... lso: abstract title title insurance
title search :: n. the examination of county records for the prope ... e escrow lien title title insurance
trial :: n. the examination of facts and law presided over ... at a hearing held at a later time.
undisclosed principal :: n. a person who uses an agent for his/her negotiat ... dispute. See also: agent principal
undivided interest :: n. title to real property held by two or more pers ... y by the entirety tenancy in common
unlawful detainer :: n. 1) keeping possession of real property without ... Thirty-day notice three-day notice
use :: n. the right to enjoy the benefits of real propert ... ay it is only of academic interest.

Popular Law Searches

legal definition ministerial act :: n. an act, particularly of a governmental employee ... exercising any individual judgment.
chancery legal definition :: n. a court that can order acts performed. Today ch ... ts in most states. See also: equity
testamentary disposition legal definition :: n. how the terms of a will divide the testator's ( ... named beneficiaries. See also: will
contract of sufferance :: n. a "hold-over" tenancy after a lease has expired ... y tenancy at will unlawful detainer
forthwith legal definition :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
forthwith definition legal :: adv. a term found in contracts, court orders and s ... mediacy, with no excuses for delay.
what is to wit in a legal contract :: prep. that is to say. Example: "the passengers in ... tty Bumgartner and Sherry Younger."
mirror wills legal definition :: n. the wills of a husband and wife which are ident ... d each names the other as executor.
clean hands doctrine latin :: n. a rule of law that a person coming to court wit ... ices. See also: affirmative defense
sine qua non only relates to contract law :: (see-nay kwah nahn) prep. Latin for "without which ... qua non of the injury to Playmate.

Other Law Terms - E

earnest payment :: n. a deposit paid to demonstrate commitment and to ... (liquidated) or committed damages.
easement :: n. the right to use the real property of another f ... rstandings at the time of creation.
egress :: n. way of departure. A word usually used in conjun ... unction with "access" or "ingress."
EIR :: n. popular acronym for environmental impact report ... e also: environmental impact report
ejectment :: n. a lawsuit brought to remove a party who is occu ... o the property through her parents.
ejusdem generis :: (eh-youse-dem generous) v adj. Latin for "of the s ... t was of land-based transportation.
elder law :: n. a specialty in legal practice, covering estate ... t field. (definition revised: 9/02)
election of remedies :: n. an outmoded requirement that if a plaintiff (pa ... dence has not been fully presented.
election under the will :: n. in those states which have statutes which give ... arries) left to her under his will.
eleemosynary :: (eh-luh-moss-uh-nary) adj. charitable, as applied ... pplied to a purpose or institution.
element :: n. 1) an essential requirement to a cause of actio ... of action crime general plan zoning
emancipation :: n. freeing a minor child from the control of paren ... vorced parent to pay child support.
embezzlement :: n. the crime of stealing the funds or property of ... in trust. See also: embezzler theft
embezzler :: n. a person who commits the crime of embezzlement ... r property of an employer or trust.
emblements :: n. crops to which a tenant who cultivated the land ... ome the property of his/her estate.
emergency :: n. a sudden, unforeseen happening which requires a ... r to protect lives and/or property.
eminent domain :: n. the power of a governmental entity (federal, st ... ngs. See also: condemn condemnation
emolument :: n. salary, wages and benefits paid for employment ... d for employment or an office held.
emotional distress :: n. an increasingly popular basis for a claim of da ... ar value upon it. See also: damages
employee :: n. a person who is hired for a wage, salary, fee o ... ondeat superior scope of employment