What Is Escrow Agent?
Escrow Agent: The neutral party that holds funds and documents and carries out the closing.
Also called: settlement agent, escrow officer, closing agent
The escrow agent, also called the settlement agent or closing agent, is the neutral party that manages the transaction from ratified contract to closing. Depending on the state, this is a title company, escrow company or real estate attorney.
What they do
- Hold the earnest money in a trust account
- Order the title search and title insurance
- Get payoff figures for the seller's mortgage
- Coordinate with the lender on closing documents
- Prepare the settlement statement
- Conduct the signing, collect and pay out funds, and record documents
Good to know
The escrow agent follows written instructions from both parties and the lender. They can't give legal advice to either side.