What is an escrow agent?
An escrow agent is an independent third party who holds property in trust pending completion of the terms of the Agreement. They are responsible for collecting payments from the Purchaser and giving those payments to the Seller. An escrow agent is administratively convenient for all parties to a sale transaction as they handle all funds, bills and documents relating to the sale transaction. Both the Seller and the Purchaser can give the escrow agent instructions – for example, if the Seller has failed to perform one of their obligations under the Agreement, the Purchaser can have the funds necessary to fulfill that obligation withheld from the Seller out of their monthly payment.
Related Questions
- How do I file a complaint against a mortgage broker, mortgage banker, mortgage agent, escrow agency, escrow agent, loan modification consultant, foreclosure consultant or covered service provider?
- As the closing agent, how do I handle the money received and/or disbursed from the closing escrow transaction?
- Why can’t a real estate company act as the escrow agent?
