Definition of Escrow agent:
Trusted third-party which holds an asset or document on behalf of a first-party for delivery to a second-party or beneficiary within a specified timeframe or upon the occurrence of a condition or event specified in the escrow agreement.
An escrow agent essentially serves as a neutral middleman in the context of an escrow agreement. An escrow agreement is a contract between two parties whereby each agrees that a third party should hold an asset on their behalf until their transaction is completed. The funds or assets are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Money, securities, funds, and titles to real estate can all be held in escrow.
An escrow agent is a person or entity that holds property in trust for third parties while a transaction is finalized or a disagreement is resolved. The role of escrow agent is often played by an attorney (or notary in civil law jurisdictions). The escrow agent has a fiduciary responsibility to both parties of the escrow agreement.
How to use Escrow agent in a sentence?
- Escrow agents are often associated with real estate transactions, but they can be used in any situation where funds will pass from one party to another.
- An escrow agent is a third party, a person or entity, which holds an asset or funds before they are transferred from one party to another.
- The escrow agent holds the funds or the asset until both parties have fulfilled their contractual requirements.
Meaning of Escrow agent & Escrow agent Definition