Escrow is an account that is used to store money, typically in the form of a down payment or closing costs, and hold it until the conditions of the transaction have been fulfilled. Once the requirements have been met, the funds are then released to the appropriate party, allowing the transaction to be completed. This type of account is an important tool in ensuring the safety of the funds and that all parties involved in the transaction are satisfied before the funds are exchanged.
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Daniel H. Weberman, The Kabinet Founder – Terry I. Weberman, The Kabinet CPA
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