What role does a real estate escrow agent play?

The role of a real estate escrow agent is fundamental in the transaction process as they act as a neutral third party. Their primary responsibility is to facilitate the closing of a real estate transaction. This involves holding onto significant documents and funds until all terms of the transaction are satisfied, ensuring that both the buyer's and seller's interests are protected.

The escrow agent manages the funds by holding the buyer's deposit in an escrow account and coordinating with all parties involved to ensure that all contract terms are completed before the money is released and the title is transferred. This function is essential in building trust among parties, as it assures that neither the buyer nor the seller can access the funds or documents until everything is in order.

While negotiating property prices, evaluating property values, and conducting home inspections are important aspects of real estate transactions, these tasks typically fall outside the scope of an escrow agent's responsibilities. Instead, those roles are usually performed by real estate agents and appraisers.