What is an escrow? 

“Escrow is a legal arrangement whereby money and intellectual or other property is delivered to a neutral third party (called an escrow agent) to be held in custody, until a predefined condition is met”. 

An escrow agreement is a legal arrangement to help parties perform their contracts and avoid disagreements. The escrow agreement has three parties: a "depositor", an "escrow agent" and a "beneficiary". In commercial transactions, contracting parties often require a neutral, independent and trusted third party to protect the interests of all parties while the terms and conditions of the agreement between the contract parties are being fulfilled.