Escrow Agent

• The process requires a certain monetary amount and the property documentation be placed with a state-authorized third party until all contract stipulations are met, after which the money and documents are dispersed to their rightful owners. This third party is called an escrow agent or officer, and these can be lending institutions, title companies, real estate lawyers or real estate brokers. The job of the escrow agent is to make sure that all documents are in order, to be an intermediary between a buyer and seller and to ensure that both parties understand the terms of the transaction.
  
  

Escrow Fee

• The escrow fee is not set by the state law, but by the escrow agent. If the lending institution is the escrow agent, then the fee is paid to them; otherwise, it is charged by whichever company is the escrow agent and deducted from the down-payment amount being held in escrow. This escrow fee does not make up the entire closing costs and will vary depending on the size, type and complexity of the transaction.
  
  

Transparency

• Real estate laws require that lenders and all parties involved make their fees transparent. This allows both the buyer and seller to see the total amount paid in closing costs, escrow, and other fees. Prior to entering an escrow contract, you can ask the escrow officer or agent to provide you with an estimate of what the escrow will cost for a certain real estate transaction.
  
  

Cancelation

• When a real estate transaction is canceled and both the buyer and seller are in agreement, the monetary amount held in escrow may be returned to the buyer. But the final returned amount may not be the full amount deposited, as escrow fees, appraisal fees and payment for other services may be withdrawn from the amount, even if the real estate transaction was not completed. These fees will still be charged, as the responsibility of the escrow agent and other service providers were upheld.