Escrow Agent

An escrow agent is the person or company named in a purchase contract to hold the earnest money and other funds for the transaction. Depending on the state, that might be a title company, an escrow company, a real estate attorney, or a broker with a trust account.

The escrow agent works for the deal, not for either party. Once a buyer deposits $5,000 on a $500,000 home, the agent keeps it until closing, then applies it to the buyer's side of the settlement statement.

If the sale falls through and buyer and seller disagree about the deposit, the agent usually will not pick a winner. Many contracts and state rules require signed instructions from both sides or a court order before the money moves. Who holds earnest money and earnest money disputes explain what happens next.