Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Escrow means a third party which is neutral and is holding onto funds and assets of two parties about to complete transactions. Escrow accounts are set up and managed by escrow agents or these third parties. Funds may be released only upon the fulfillment of specific terms and conditions as outlined in the agreement earlier. This may be a method of securely holding onto properties, securities, or money, and often safeguards the parties from scams or fraudulent transactions.
Escrow systems are used widely in the real estate sector. They are often used in a different way, i.e. where real estate authorities mandate developers to keep funds raised from customers (for under-construction projects) in escrow accounts, managed by independent third parties/authorities. Funds will only be released upon the completion of specific milestone, or meeting specified terms and conditions. Sometimes escrow accounts are applicable for real estate transactions between two parties in the real estate sector as well.
