An escrow is used when an independent third party holds funds on behalf of two other parties to a contract. The third party will continue to hold the funds until instructed to disburse them, which usually occurs when one of the parties to the contract fulfills an obligation to the other party. An escrow is used when the seller in a transaction wants to be assured that the buyer has sufficient funds to pay for the underlying goods or services. An escrow is commonly used during the sale of a residential home or a business. The normal process flow is for the parties to fulfill all obligations noted in a contract, after which the funds in escrow are paid to the seller, and then title is passed to the buyer.