What is Escrow? Full Explained with Examples

This is foe everyone out there who has little or no idea what Escrow is.
It is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps to make transaction secure by keeping the money in a secure escrow account.
Escrow is very usefull where a large amount of money is involved, so lets make it simple with steps.

What is Escrow?

• Usually there are two parties first is buyer and second is seller.
• Escrow is a third party or a third person involved in the deal.

Now lets see how escrow works.

• Seller posts a product or service for sale that attracts a buyer.
• And buyer wants to buy that product or deal.
• Deal is finalized and both the parties or person agrees for escrow.
• Buyer pays full money to the escrow.
• Escrow then instructs the seller to deliver the promised product or service.
• Once the product or service is delivered and buyer is satisfied, the buyer then informs the same to the escrow.
• And escrow now releases the money to the seller.

 So here, if the buyer sends you a fake product or dosen’t send anything at all, the money is still safe with Escrow which will given back to you. So i recommend you to use Escrow if you have trust issue.