What is the role of an escrow agent in a real estate transaction?

The role of an escrow agent in a real estate transaction is critical for ensuring that all aspects of the sale are handled securely and fairly. An escrow agent acts as a neutral third party who holds and manages funds, documents, and any other assets involved in the transaction until all conditions of the sale are met.

This includes receiving the earnest money deposit from the buyer and holding it in escrow until the deal closes. The escrow agent ensures that all necessary documents, such as the purchase agreement and title information, are appropriately handled and that the seller receives payment only after the buyer has fulfilled their obligations and all contingencies are satisfied. By managing these elements, the escrow agent protects both the buyer and seller, helping to prevent potential disputes or misunderstandings throughout the process.

The other roles listed, such as preparing the property for sale, negotiating terms, and inspecting for repairs, are typically the responsibilities of the seller's agent, buyer's agent, or home inspectors, rather than the escrow agent. This distinction clarifies why the escrow agent's primary function is to manage the transaction's funds and documents.