When contracts for the sale of real property are given to a disinterested third party for execution and closing, they are said to be placed in what?

When contracts for the sale of real property are entrusted to a disinterested third party for execution and closing, this arrangement is referred to as being placed in escrow. In an escrow situation, a neutral party, often an escrow agent or company, holds the documents, money, or other items involved in the transaction until specified conditions are met.

The key aspect of escrow is that it serves to protect all parties involved in the transaction by ensuring that obligations are fulfilled before the transaction is completed. For example, a buyer's funds might be held in escrow until the seller provides the necessary documents proving ownership and the property is transferred. This arrangement mitigates the risk of one party not fulfilling their obligations, as the escrow agent will only release the funds or documents when both parties have met their contractual agreements.

This function of safeguarding the interests of each party in real estate transactions is why "escrow" is the correct term in this context.