Wednesday Word of the Week
Escrow is a word often heard in conjunction with real estate. The term has so many different uses that it is a little mysterious. In my work as a Realtor in Chesterfield Virginia, I rarely even use the term. Folks from California or the northeast may use the term more often, but in reference to different aspects of real estate transactions.
To begin, let’s take a look at the origins of the term. Escrow is a term derived from an old French word escroue, which meant scrap of paper or roll of parchment. You might recognize similarities in the English word scroll, which has the same etymology as escrow. Originally the term referred to the parchment that a deed or promissory note would have been printed on.
This site will give you an idea of how many uses the term escrow can have.
It is defined on this site as “something of value, such as a deed, stock, money, or written instrument, that is put into the custody of a third person by its owner, a grantor, an obligor, or a promisor, to be retained until the occurrence of a contingency or performance of a condition.”
Colloquially, escrow can refer to either an account, the account manager or agent, or the deed or thing of value in the account. We will use escrow to refer to the account.
Beyond this simplified explanation, escrow can have many other nuanced applications. It is enough for most of us to know that “escrow” implies the existence of a third party that may hold funds, deeds, or other documents, released upon the meeting of certain conditions (e.g., a home inspection).
This Wednesday Word of the Week is brought to you by: Lynda Heithaus, serving as a Realtor in Chesterfield, VA, a Realtor in Powhatan, VA, and the surrounding areas for more than 10 years.
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