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Hereby is used in connection with what is present with the speaker or what the speaker has just mentioned or the speaker's present words (i.e. the present document); thereby is used in connection with what is at a distance from the speaker or what has been mentioned by the speaker or by someone else.
For example, an escrow account can be used for the sale of a house. If there are conditions to the sale, such as the passing of an inspection, the buyer and seller may agree to use escrow. In this case, the buyer of the property deposits the payment amount for the house in an escrow account held by a third party.