Washington State Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

The role of an escrow agent in a real estate transaction is to manage the transfer of funds and documents between the parties involved. This includes holding earnest money deposits, ensuring that all necessary documents are correctly prepared and executed, and disbursing funds according to the terms agreed upon in the purchase and sale agreement.

By acting as a neutral third party, the escrow agent safeguards the interests of both the buyer and the seller. They ensure that the terms of the agreement are met before the transfer of ownership officially takes place. This process helps to minimize risk for both parties and adds a layer of security and professionalism to the transaction.

Other roles mentioned, such as providing legal advice, appraising property value, or marketing the property, fall outside the typical functions of an escrow agent. Legal advice should be sought from qualified attorneys, property appraisals are generally conducted by licensed appraisers, and marketing responsibilities usually belong to real estate agents. Therefore, the primary duty of an escrow agent clearly centers on facilitating the smooth and secure transaction process between buyers and sellers.