Definition
The escrow agent is the neutral professional who holds earnest money and releases it only when conditions are met. This protects both you and the seller.
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The escrow agent plays a critical role in protecting both parties' interests by holding funds in a separate account and following specific instructions for their release. The escrow agent verifies that all contingencies are satisfied before releasing funds to the appropriate party. They maintain detailed records and documentation of all transactions and are bound by state regulations and ethical standards.
Pro Tip
Verify your escrow company is properly licensed and insured.
Example
The title company served as the escrow agent and held the $12,750 earnest money deposit until closing.