You need to know – What is an escrow account?

YouNeedToKnowWeb500An escrow account is an account maintained for the deposit of money being held in trust for others

It is not uncommon for a broker to collect a deposit from a buyer when preparing a purchase contract; the deposit does not belong to the broker, but is being held in trust for the buyer until the contract is accepted or rejected by the seller

In this case, the deposit must be placed in an escrow account