Pass New York
Open navigation
Back to all terms
License lawSubject 1 of 19

Escrow

Money, documents or property held under stated conditions until a transaction event occurs.

Direct answer

What does Escrow mean?

Money, documents or property held under stated conditions until a transaction event occurs.

Exam cue: Identify who may hold the item, what condition controls release and why client funds must remain separate.

What does it look like in a question?

New York example

A buyer's deposit is placed in the broker's special account pending closing or another authorized disposition.

Common exam trap

What should you not confuse it with?

Escrow is the holding arrangement. It is not automatically the same thing as a mortgage escrow account for taxes and insurance.

Related license law terms

Article 12-AThe part of New York Real Property Law that regulates real estate brokers and salespersons.Article 78 proceedingA court proceeding used to seek review of certain actions or determinations by a New York state or local body.Blind advertisementA real estate advertisement that fails to identify the broker or brokerage as required by New York advertising rules.ComminglingMixing client funds or property with a broker's own funds or property.ConversionWrongful exercise of control over another person's money or property that seriously interferes with that person's rights.Net listingA listing arrangement that sets an amount the owner will receive and lets the broker keep any excess as compensation.
Sources used3 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

Keep learning

Put the term back into its full subject.

A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.

Study License Law and Regulations Try free practice