A deposit signifies money paid in good faith to assure the performance of a contract, commonly used with sales contracts and leases. If the individual who put up the deposit fails to fulfill contract terms, the deposit could be forfeited unless contract conditions allow for a refund.
An escrow account is a financial arrangement where a third party holds funds temporarily until they're needed for specific obligations, such as property taxes, homeowner's insurance, and mortgage insurance in real estate transactions.
Escrow analysis reviews and itemizes expenditures and contributions to an escrow account, primarily conducted at the end of a calendar year, to project the following year's required monthly payments.
An impound account, also known as an escrow account, is a type of savings account set up by a mortgage lender to pay property taxes and insurance premiums on behalf of the borrower.
Prepaids at closing refer to the upfront payments required by a lender to fund an escrow account for future payments of property-related expenses such as hazard insurance, property taxes, and private mortgage insurance (PMI). They might also cover interest accruing from the closing date until the end of the month.
Prepayments in real estate refer to advance payments of expenses like insurance and taxes, which are often funneled into an escrow account.
A trust account, also known as an escrow account in some states, is a separate bank account required by state law for brokers to deposit all client monies. This ensures that client funds are kept separate from the broker's own funds.
