What is the role of an escrowee in a real estate transaction?

The role of an escrowee in a real estate transaction is to serve as a fiduciary to both the buyer and the seller. This means the escrowee has an obligation to act in the best interests of both parties involved in the transaction, ensuring that all contractual obligations are met before the transaction is finalized.

This responsibility includes handling the earnest money deposit, ensuring that necessary documents are properly executed and recorded, and coordinating the disbursement of funds as specified in the purchase agreement. The escrowee must exert reasonable care in managing these duties, protecting the interests of both parties and facilitating a smooth transfer of property.

Other options misrepresent the nature of the escrowee's role. For example, an escrowee does not act solely on behalf of the seller, nor do they exclusively represent the buyer in legal matters. Additionally, managing advertising for the property falls outside the escrowee's duties, which focus exclusively on the transaction process itself.