In one sentence
The contract governing funds or documents held by a neutral escrow agent, stating exactly what is held, for whom, and the conditions of release.
The longer version
In loan closings, escrows show up two ways: the closing escrow that holds funds and signature pages until conditions are met, and post-closing escrows or holdbacks for repairs, taxes, or disputed items.
The agreement matters because release conditions are where deals argue later. Precise conditions, named approvers, and deadlines keep an escrow from becoming a standoff.
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