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In this video, Todd Tremonti from Market Experts Realty explains the concept of an escrow account, commonly mentioned in real estate transactions. An escrow account is defined as a neutral bank account that holds funds during a transaction. In Texas, these accounts are typically managed by title companies and are used to secure money, such as earnest money, which is held between the buyer and seller. The video also references another tutorial on earnest money for further detail. Overall, the escrow account functions as a safeguard for funds until the transaction process progresses.