What is a title agency acting as an escrow agent responsible for?

A title agency acting as an escrow agent is primarily responsible for retaining documents and funds until all conditions of a real estate transaction are fulfilled. This role is crucial in ensuring that both parties fulfill their contractual obligations before the transaction is completed. The escrow agent acts as a neutral third party, holding onto the buyer's deposit and any necessary documents related to the sale, and only releasing them when all terms have been met, such as the completion of title searches, inspections, or when the buyer is ready to close the deal.

By managing these transactions carefully, the escrow agent protects the interests of both the buyer and the seller, ensuring that the transfer of ownership and funds is executed smoothly and fairly. This function is fundamental to maintaining trust between the parties involved, as it guarantees that no funds or ownership documents are exchanged until all specified conditions are satisfied.