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

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center