An amount of money held back at closing by the lender or the escrow agent until a particular condition has been met.

Any portion of a loan that is held until some additional requirement, such as completion of or an improvement project is attained. Escrow holdbacks are a borrower accommodation that may allow the loan to close and the borrower to occupy the property while incidental work is in progress.

Funds held by the closing agent to ensure completion or repair of specific items such as a driveway or landscaping.