Escrow Agent: What You Need To Know

who is the escrow agent in a real estate transaction

Commercial Escrow Co. v. Rockport Rebel, Inc., 778 S.W.2d 532 (Tex. App. Corpus Christi 1989). Escrow AccountThe escrow account is a temporary account held by a third party on behalf of two parties in a transaction. It reduces the risk of failing to oblige the transaction by either of the parties. It operates until a transaction is completed and all the conditions are met.

What is an Escrow Agent?

An escrow agent is the person who handles all escrow services when you buy or sell a home, such as distributing money between the buyer and seller and managing all of the necessary paperwork to help you close. Escrow agents help make sure that all financial documents are completed in a timely and accurate manner. They also may assist in a number of other jobs, such as writing the deed, initiating a title search, and finding title insurance.

Escrow agents are typically agreed upon by both your lender and the seller to help manage the transaction. By acting as a neutral party, escrow agents represent the interest of both the buyer and seller to help minimize risk in real estate transactions for both parties.

Compliance is often a big concern as well since the Patriot Act and other laws require full disclosure of both corporate and personal information. The Quicken Loans blog is here to bring you all you need to know about buying, selling and making the most of your home.

Escrow Agent vs. Trustee

Throughout the home buying process, there may be, at times, the need for a trusted and neutral third party to handle money while you complete certain transactions. An escrow agent is a third party or other neutral person who manages the property in an escrow account. In summary, whether the escrow agent escrow real estate is a business or an individual, the purpose they serve is that of a neutral, trusted third party to transactions that may involve persons who never end up meeting each other. Your escrow agent may also be responsible for conducting a title search on the property and issuing a title insurance policy.

The court will ultimately decide what happens to the escrow money and documents. When you’re deciding where the money will be held, be sure to consider the credit rating of the financial institution where you’ll be depositing the money.

RE84RC13: Escrow / Escrow Agents / Escrow Accounts in Real Estate

A title officer is someone who manages money abs assets as well but in an individual’s trust. A title officer only has fiduciary duties towards one person, the person who is said to receive the money and assets in the trust once all requirements are met, also known as the beneficiary of the trust. Escrow agents don’t work for the buyer or the seller; they must remain impartial during a transaction. They typically work for title companies, mortgage lenders, or credit unions. As a neutral party, the duties of an escrow agent are to both the seller and the buyer. These include the duty to make a full disclosure and to exercise a high degree of care to the property in the escrow account.

who is the escrow agent in a real estate transaction

Think of escrow as your middleman or the neutral zone between two parties during real estate transactions. An escrow company can hold deeds, bonds, money, or even a piece of property on behalf of the original owner and then release it once all obligations have been met by both parties. By hiring an escrow company, the buyer is required to put up the funds or whatever is being offered from his/her end, but the seller does not receive that money or property until the agreed-upon conditions have been met. The job of an escrow agent and closing agent might look similar, but in reality, these are poles apart from each other.

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

Everything you needed to know about the role of an escrow agent before you head into escrow yourself. Additionally, a bounced check from an escrow agent is a signal that the money may have been misused. Consumers can protect themselves against losses in an escrow agreement.

They’ll also ensure that the seller is the rightful owner of the home and that they actually have the right to sell the property. The title search is an essential piece of this puzzle, which aims to uncover any issues with or claim against the property’s title. A fiduciary is a person or organization that acts on behalf of a person or persons and is legally bound to act solely in their best interests. Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage. Citrus Heritage Escrow, Inc. is licensed by the California Department of Business Oversight, #96DBO61413 and operates as an entirely independent company.


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