GLOSSARY TERM
	Escrow
	DESCRIPTION
	One of the common law requirements for a deed to be binding and effective is 'delivery'. Delivery may be absolute or conditional on some other event (such as execution by another party or parties), in which case the deed is said to be 'in escrow' until the condition is fulfilled. The term is also used in connection with the placing by one contracting party of documents or other things (such as confidential information or software) in the custody of an independent third party (the 'escrow agent'), to be released to the other contracting party on the occurrence of some specified event (such as contract default). The materials held by the escrow agent are said to be 'in escrow'.