Uses of an Escrow Account

2 Replies

Escrow accounts can also come into play when a landlord needs to hold tenant deposits, etc. in an account separate from their operating account. People also use them when they want to fund a big project, but need to gather funds from other individuals/sources and hold them in escrow until enough has been collected to move forward. The escrow company can also manage disbursements, pay out royalties, etc . An escrow-only company can help with this as oppose to an escrow/title company that deals with typical mortgage transactions.