closing
escrow agent
An escrow agent is a neutral third party who holds money, documents, and instructions for a transaction and releases them only when all conditions of the agreement are met. Escrow agents may be title companies, attorneys, escrow companies, or brokers, depending on local practice and state law. They owe duties to all parties to follow the escrow instructions exactly and cannot favor one side.
- Exam tip
- The escrow agent is a limited, neutral agent of both parties and must follow written instructions; it cannot release funds on one party's demand alone when there is a dispute.
- Example
- A title company acting as escrow agent holds the buyer's $50,000 down payment and the seller's signed deed until the loan funds, then disburses everything.
Related terms & state variants
Sources
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Last verified: 2026-10-23