Who is an Escrow Agent?
An escrow agent is an individual or entity who oversees the negotiation, administration, and the completion of transaction pertaining to a real estate property.
The third-party a.k.a the escrow agent takes a neutral stance between the two parties involved and ensures that the transactions are legally safeguarded by holding on to the property in question until the transaction is completed.
How to Choose an Escrow Agent?
There are two things an escrow agent is characterised with - speed and accuracy. As transactions have to be established to be completed in as less as one day at the most, escrow agents will have to complete a number of tasks in a short period of time. These may include setting up the right escrow structure, negotiation of the escrow agreement, collection of compliance-related documents, investing the deposits in line with the agreement, disbursing the funds and reporting of taxes.
Also, asset safety, servicing capability, and the level of expertise are all often looked into when choosing an escrow agent.
Understanding an Escrow Agent
Simply put, an escrow agent acts as an intermediary between the parties involved in the context of an escrow agreement. An escrow agreement notifies that the property is held by a third party until the two parties involved have completed the transaction.
Once the predetermined obligations have been fulfilled by both parties, the escrow agent will hand over the property as per the contractual instructions.
