What term describes the process in which funds and documents are held by a third party until specific conditions are met?

The term that describes the process in which funds and documents are held by a third party until specific conditions are met is "escrow." This arrangement typically involves a neutral third party who manages the assets (such as money or important legal documents) to ensure that the conditions of a contract or agreement are fulfilled before the assets are transferred to the relevant parties.

Escrow is commonly used in real estate transactions, where the buyer deposits money into an escrow account to be held until all conditions (such as inspections and financing) are satisfied before the sale is finalized. This process provides security and assurance to both parties involved in a transaction, as it mitigates the risk of loss or non-compliance.

In contrast, trust refers to a fiduciary relationship wherein one party holds property for the benefit of another, but it does not specifically imply conditions that need to be met for release. Liability pertains to legal responsibilities or obligations, which does not relate to the holding of funds or documents. Assignment refers to the transfer of rights or benefits from one party to another and does not necessarily involve a third-party holding assets under specific conditions.