We explain their unique role and how they should be executed. An escrow agreement is a legal document outlining the terms and conditions between parties involved in an escrow arrangement.Parties enter into an Escrow Agreement to deposit into an escrow account specified funds, securities or other property that is to be later disbursed. How can companies protect themselves from these risks and ensure the success of their purchase and sale agreements? The answer is simple: use an escrow account. The primary purpose of a thirdparty escrow arrangement is to protect both buyers and sellers regardless of the size and complexity of the deal. Learn how escrow, the key to safe and secure business transactions and acquisitions, protects both the seller's and buyer's interests. An escrow holdback can help both a buyer and a seller get to an agreement in the price in a business transaction. See how you can use them. Use Escrow​​ An escrow agent is a third party responsible for holding all monies and documents until all conditions of the escrow are fulfilled.