An escrow is a mutual financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given business. That third party is known as an escrow provider, who holds the funds temporarily and makes the transaction safer.
The word Escrow derived from Old French word escroue.
If you are doing a big transaction, you will be wondering whether you can trust the other person or party involved in the transaction.
Introducing a neutral party like escrow in a transaction minimalizes the risk for both the parties.
When you are committed to buy or sell anything, you always agree to certain terms. Using escrow makes sure that your certain terms are met.
Escrow service might include escrow service fees charged by the escrow agent who holds the funds or assets until appropriate instructions are received from both the parties.
Escrows are mostly used in real estate transactions but can be applied to any business where funds pass from one party to another.
How does Escrow Work?
- Buyer and Seller mutually agree to terms
- Buyer or Seller initiates the request with the escrow along with the agreed terms
- Buyer pays the agreed fund to the Escrow
- The seller delivers the product or service to the buyer
- Buyer accepts the product or service
- Escrow releases the fund to the seller on confirmation from both parties
Where Escrow can be used
- Internet Escrow
- Real estate
- Intellectual property
- Mergers and acquisitions
- Motor Vehicles
- Milestone Transactions
Escrow in Dark Web
Almost 95% of the shopping experience on the dark web are scams. There is no way the payments can be tracked on the dark web. As most of the transactions in the dark web happen using some cryptocurrency like bitcoins, there is no guarantee that the seller will be delivering the product as promised.
In situations like this, Escrows are a must in dark web purchases. It provides buyer and seller protection that the product will be delivered.
From a customer’s perspective, it may be extra cost involved. But if we consider the risk factor associated with dark web transactions, it has a greater advantage.
But still, we don’t want to recommend the authenticity of any escrows in Dark web. So, we won’t post any Dark web escrow links in this post.