What is the role of an escrow agent in real estate transactions?

The role of an escrow agent in real estate transactions is to act as a neutral third party that manages the exchange of funds and documents between the buyer and the seller. This means that the escrow agent holds onto the buyer's deposit and all necessary documents related to the transaction until the terms of the sales agreement are fulfilled. By serving as an impartial intermediary, the escrow agent ensures that both parties meet their obligations under the contract before any money or property changes hands, thereby minimizing the risk of fraud and protecting the interests of both parties involved.

The other choices specify roles that do not align with the function of an escrow agent. Advocating for the buyer implies a biased position, which contradicts the essential neutrality required in an escrow arrangement. Managing property maintenance falls outside the financial and transactional duties of the escrow agent, as maintenance is typically the responsibility of property owners. Conducting home inspections relates to assessing the condition of the property and is usually performed by a home inspector rather than an escrow agent.