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.
The escrow account will be managed by the listed escrow agent. He/she will be releasing funds only after certain contractual obligations, responsibilities, and other pre-fixed terms are fulfilled. Properties, money, securities, and other types of assets, may be held through escrow accounts. The escrow is the third party which is neutral and holds funds or assets before their transfer across parties in a transaction. The third party has the funds till both parties have fulfilled their contractual obligations.
Escrow takes place in property/real estate transactions, although it is applicable for all scenarios where funds may be transferred across parties. Escrow is sometimes used for home purchases and also for the mortgage lifecycle. Escrow accounts are sometimes taken as a form of security or protection against any fraud/scam, especially in terms of properties/real estate which have higher values. Developers may also keep their funds in escrow accounts while competing projects and they may be released only when they fulfill certain construction milestones.
