The Enterprise and Economic Development Glossary

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escrow:

... that which is acceptable as being of appropriate value deposited with a neutral third party, as escrow agent, which is to be delivered upon fulfillment of an agreement; an account held in trust by a real estate broker or a lender for proper distribution upon consummation or an agreement or termination of a transaction, or in the case of a borrower's escrow account to pay obligations such as property taxes and insurance premiums.

back-to-back escrow:

... money held by a lender or other appropriate third party to cover certain obligations during the concurrent sale of one property and the purchase of another. The expression back-to-back is applicable in other transactions where consecutive or successive could be used. Another real estate example is that of the back-to-back lease agreement made with a prospective lessee by concession of a lessor. The prospect already has a lease; therefore, the lessor's concession is to pay out the existing lease; ergo, two leases run consecutively for a period of time, one being the lessee's new obligation and the other, the lessor's.

See real estate, lease, lessee, lessor

definition of escrow / definition of back-to-back / definition of back-to-back lease

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