What is an escrow agent?

A mortgage escrow agent is an independent third party, a person or company that manages the escrow account to facilitate the loan closing.� The escrow agent acts for both the buyer and the seller according to their instructions, safeguarding certain legal documents and funds in a transfer of real property until the specified performance is completed.�

Generally, the escrow agent participates at the end of the mortgage process, the loan-closing stage.�� The escrow agent works to aid in the closing of the loan, ensuring that all the buyer�s and seller�s conditions have been met.�

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An escrow agent�s duties include:

• Requesting a title search
  
• Ensuring that the necessary process is followed to clear the title
  
• Satisfactorily executing escrow instructions
  
• Coordinating required insurance coverage, fee requirements
  
• Recording appropriate documents
  
• Holding funds and documents for closing
  
• Obtaining properly signed and notarized documents
  
• Consultation with clients explaining documents for signature
  
• Providing copies of properly executed documents
  
• Preparing final closing statement
  

Mortgage escrow accounts are usually set up for the purpose of managing on-going property related obligations such as taxes, insurance, and other fees, ensuring sufficient available funds and timely payment.�� A mortgage servicer will handle the management of the mortgage escrow.