What is Escrow Agent?
An Escrow Agent is an individual or business that temporarily holds property as a neutral intermediary while a purchase is being made or an issue is resolved. For example, a lawyer frequently fills the position of an escrow agent (or notary in civil law jurisdictions). Both sides to the escrow agreement end up owing the escrow agent a legal duty.
Understanding of Escrow Agent
Generally, these agents act as neutral negotiators. An escrow agreement is a partnership in which each consented to have a third party safeguard an asset for them until the deal closes. The escrow agent holds the funds or property until it gets specific information or meets specified contract terms.
Most of the time, An escrow agent can be a title organization in terms of purchasing and selling a home. In such cases, the title firm holds the estate's deed in trust till the purchaser and retailer's conditions are met.
Practical Example
Neil and his partner are planning to buy a home. He's discovered the ideal location and finalized the purchase agreement. He also submitted his original investment, which is a percentage toward the transaction, to the escrow account at this time.
The escrow agent will guide him further through the project. She assists Neil with an initial title search, checking the conditions’ effectiveness, ensuring that the lender meets the terms and conditions, and handling the payment.
The escrow agency can finish the escrow, register the title, and release all cash after they are satisfied that everything has been correctly done.
In Sentences
- The term escrow agent is commonly used to indicate an individual who acts as an intermediary between the seller and buyer before the deal is finalized.