Escrow is a financial arrangement in which an impartial third party, called an escrow agent or escrow company, holds and regulates the disbursement of funds or documents on behalf of two parties who are involved in a transaction. The money or assets held by the escrow service are released only when all conditions set forth in the agreement have been met. This process is commonly used in real estate transactions to ensure that the seller delivers clear title and the buyer pays for the property, as well as other situations such as loan closing, construction contracts, and intellectual property transfers.