Home/Knowledge Base/Escrow Agreement (Financial)
Financial & TaxID: kb-fin-070

Escrow Agreement (Financial)

Agreement for a third party to hold funds during a transaction.

Added: February 24, 2026
Applicable: Universal

Detailed Explanation

A Financial Escrow Agreement involves a neutral third party holding funds or assets until specific conditions of a financial transaction are met. This is common in M&A deals, large asset purchases, or complex financing arrangements to mitigate risk for both the buyer and seller.

Tags

#security#transaction#trust#risk mitigation

Applicable Countries