Escrow Agent

AAA

DEFINITION of 'Escrow Agent'

An entity that has fiduciary responsibilities in the transfer of property from one party to another. Typically associated with selling or buying a home or other property, the escrow agent will secure the property and examine documents to make sure that the terms of the sale are met on each end, serving both the buyer and seller in the transaction.

INVESTOPEDIA EXPLAINS 'Escrow Agent'

An escrow agent may be a title company when it comes to selling a home; the title company will hold the deed in escrow until all of the terms of both the buyer and seller are met. The buyer may deposit the money for the purchase with the escrow agent, which serves to "validate" the transaction prior to last-minute closing terms.

Whether the escrow agent is a business or an individual, the purpose they serve is that of a neutral, trusted third party to transactions that may involve persons who never end up meeting each other.

RELATED TERMS
  1. In Escrow

    An item such as money or a piece of property that has been transferred ...
  2. Air Loan

    A mortgage fraud scheme in which a mortgage broker invents a ...
  3. Escrow

    A financial instrument held by a third party on behalf of the ...
  4. Escrow Agreement

    A legal documents that outlines the terms and conditions between ...
  5. Deed

    A legal document that grants the bearer a right or privilege, ...
  6. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders ...
Related Articles
  1. Mortgage Fraud: Understanding And Avoiding ...
    Home & Auto

    Mortgage Fraud: Understanding And Avoiding ...

  2. Tax Deductions For Rental Property Owners
    Taxes

    Tax Deductions For Rental Property Owners

  3. Understanding The Mortgage Payment Structure
    Credit & Loans

    Understanding The Mortgage Payment Structure

  4. Understanding The Escrow Process
    Options & Futures

    Understanding The Escrow Process

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center