What is the primary role of an "Escrow Agent"?

The primary role of an Escrow Agent is to serve as a neutral third party responsible for holding and safeguarding funds and documents during the real estate transaction process until the closing occurs. This position is crucial in ensuring that both the buyer and seller fulfill their obligations within the terms of the sales contract. The escrow agent collects earnest money deposits, holds the signed documents (like the deed), and ensures that all requirements are met before the funds and property are exchanged. This arrangement helps protect the interests of both parties and fosters trust in the transaction, as the escrow agent is impartial and works to facilitate a smooth closing process.