Which term describes a document kept in the custody of a third party and released when a condition is satisfied?

Which term describes a document kept in the custody of a third party and released when a condition is satisfied?

• A. Elicited
• B. Cinched
• C. Fondle
• D. Escrow

Answer: (D)

Escrow is an arrangement where a document or funds are placed with a neutral third party and held until a specified condition is met, at which point the item is released to the appropriate party. This setup protects both sides by ensuring obligations or criteria are fulfilled before transfer. In real estate, for example, a deed or money can be put into escrow and released at closing once conditions like financing approval and inspections are satisfied. The other words don’t fit because they don’t describe a conditional hold and release by a third-party intermediary.

Escrow is an arrangement where a document or funds are placed with a neutral third party and held until a specified condition is met, at which point the item is released to the appropriate party. This setup protects both sides by ensuring obligations or criteria are fulfilled before transfer. In real estate, for example, a deed or money can be put into escrow and released at closing once conditions like financing approval and inspections are satisfied. The other words don’t fit because they don’t describe a conditional hold and release by a third-party intermediary.