Kovats Real Estate School Practice Test 2026 - Free Real Estate Practice Questions and Study Guide

An escrow agent in real estate serves as an independent entity that manages funds and documents during property transactions. Their primary role is to hold and safeguard these assets until all terms of the purchase agreement are fully met by both the buyer and the seller. This typically involves ensuring that both parties fulfill their contractual obligations, such as inspections, repairs, and financing requirements. Once all conditions are satisfied, the escrow agent will facilitate the closing process, which includes disbursing the funds to the seller and transferring the property title to the buyer.

This function promotes trust between the parties involved, as the escrow agent acts neutrally and is bound by legal and ethical guidelines to ensure a fair process. Therefore, the role of the escrow agent is crucial in real estate transactions, providing security and peace of mind to both buyers and sellers.