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Last Updated: Oct 31, 2024

In the case of the purchase or sale of real estate, escrow is a transaction in which a third party, the title company’s escrow officer, acts as agent for the buyer and seller, carries out the instructions of both (usually in the form of a purchase/sale contract or agreement) and assumes the responsibility of handling documentation and disbursement of funds involved in the transaction.

When financing is involved, the title company’s escrow officer acts as the agent for a lender and acts according to its closing instructions.

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