What is the
Role of an Escrow Agent
Escrow agents are typically associated with selling or buying a home or other real estate. In some jurisdictions, including the United States, they may be referred to as title agents. In these cases, the escrow agent secures the property and examines documents to make sure the terms of the sale are met on each end, thus serving both the buyer and seller in the transaction.
When it comes to buying and selling a home, an escrow agent may be a title company. In such cases, the title company holds the deed to the property in escrow until all of the terms of both the buyer and seller are met. The buyer may deposit the money for the purchase, or at least the down payment, with the escrow agent, which serves to validate the transaction and reassure the seller until last-minute closing terms are met. The amount in escrow is then transferred to the seller, and the property deed to the buyer, once all the conditions for the sale are satisfied.
In summary, whether the escrow agent is a business or an individual, the purpose they serve is that of a neutral, trusted third party to transactions that may involve persons who never end up meeting each other.