What role does an escrow agent play in a real estate transaction?

In a real estate transaction, the escrow agent serves as a neutral third party who is responsible for managing the escrow process, which is essential for ensuring that all aspects of the transaction are completed smoothly and fairly. This involves holding funds and documents related to the transaction until all conditions of the sale have been met.

The escrow agent accepts earnest money deposits from the buyer, manages the documentation required for the transaction, and ensures that all terms of the purchase agreement are fulfilled before releasing the funds to the seller. By acting as a neutral party, the escrow agent helps protect the interests of both the buyer and the seller, facilitating transparent communication and reducing the risk of disputes.

Other roles listed, such as representing the buyer only or being a legal advisor for the seller, do not accurately describe the function of an escrow agent. The agent's neutral status is crucial because it fosters trust between both parties involved, ensuring that neither side has an unfair advantage during the transaction.