# Escrow

*Real Estate — Finicade finance glossary*

Escrow is a neutral third party holding money or documents until conditions are met, so neither side has to trust the other. In a purchase it holds the deposit until closing. After closing, an escrow account is something different: the lender collecting property tax and insurance with your mortgage payment and paying them on your behalf, which is why a monthly payment changes when the tax bill does.

**Also known as:** escrow account, in escrow, impound account

**Related terms:** [Closing Costs](https://finicade.com/glossary/closing-costs), [Earnest Money](https://finicade.com/glossary/earnest-money), [Title Insurance](https://finicade.com/glossary/title-insurance), [Property Tax](https://finicade.com/glossary/property-tax), [Cashier's Check](https://finicade.com/glossary/cashiers-check)

Source: https://finicade.com/glossary/escrow