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Escrow Agreement: Escrow Agreements are a tri-partite agreement under which a buyer agrees to deposit a down payment for the purchase of a property to the escrow agent and the escrow agent undertakes to seller and the buyer that he will release or dispose the escrow funds in certain circumstances (as set out in the agreement) such as closing. The escrow agent holds the monies until the conditions of an agreement are met. When the funding is complete and the deed is clear, the escrow agent will then record the deed to the buyer and deliver funds to the seller.