In real estate transactions, what is typically held by an escrow agent?

An escrow agent plays a crucial role in real estate transactions by acting as an impartial third party that holds and safeguards assets during the process. The primary function of an escrow agent is to manage funds and important documents until specific conditions of the sale are met, thus ensuring that both the buyer and seller fulfill their obligations. Common items held by the escrow agent include the buyer's earnest money deposit and the seller's property title, along with other necessary legal documents required to finalize the transaction.

In contrast, home inspection reports are typically provided directly to the buyer and are not held in escrow. Property tax assessments are generally managed by local government agencies and do not factor into the escrow process in terms of being held by the agent. Rental agreements are associated with leasing arrangements rather than real estate transactions involving sales and are not relevant to the escrow function. Therefore, the key responsibility of the escrow agent in this context revolves around the safeguarding of funds and critical documents necessary for a successful transaction completion.