Describe the role of an escrow agent in a real estate transaction.

An escrow agent serves a crucial function in a real estate transaction by acting as a neutral third party during the closing process. This means that the escrow agent is not aligned with either the buyer or the seller, which helps to ensure impartiality and fairness in the transaction. The role includes holding and managing funds, documents, and instructions from both parties until all terms of the agreement are fulfilled. Once the conditions are met, the escrow agent facilitates the transfer of cash and documents, helping to ensure that ownership of the property is correctly transferred to the buyer.

This neutrality helps build trust between the parties, as both the buyer and seller can be assured that the transaction will proceed according to the agreed-upon terms without bias. Essentially, the escrow agent's duty to be an impartial facilitator plays a key role in the smooth and successful closing of real estate deals.