Escrow Account - this is an arrangement made under contractual arrangements between dealing parties, where a trusted third party (usually a bank) receives and distributes money or documents to the dealing parties, with period such payment by the third party is subject to fulfillment of conditions agreed by contract with the working parties. It is commonly used to support sales / purchase transactions, such as the purchase of property, to reduce the risk between the parties, and to provide equipment that ensures trust and confidence.
The buyer, the seller and the bank sign an agreement, by which they agree on documents, terms and other conditions as necessary to complete the agreement, along with any urgent milestones on the the way. Escrow agent - the bank, acting as an impartial owner of the money or documents, thus minimizing the risk of fraud to all parties.