What is the main responsibility of an escrow agent?

The main responsibility of an escrow agent is to hold funds and documents until the terms of the transaction are met. This role is crucial in real estate transactions and other types of agreements that require a neutral party to manage the exchange of money and documentation. The escrow agent acts as an intermediary, ensuring that both parties fulfill their obligations as outlined in the purchase agreement before any funds or property change hands.

By safeguarding assets and documents, the escrow agent helps to mitigate risks for all parties involved, ensuring that neither side can access the funds or property until the specified conditions are satisfied. This creates a level of trust in the transaction, as it provides assurance that both the buyer and seller are committed to completing the transaction as agreed.

Other roles, such as approving a mortgage application, conducting property appraisals, or providing legal representation, do not fall under the responsibilities of an escrow agent. These functions are usually handled by such professionals as mortgage brokers, appraisers, and attorneys, who each serve distinct purposes in the real estate process.