An escrow account is a financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a transaction. In real estate, it typically manages property tax, homeowner's insurance, and mortgage insurance payments.
A trust account is a separate bank account, segregated from a broker's own funds, where the broker is required by state law to deposit all monies collected for clients. This account is often also known as an escrow account in some states.
