Escrow Agent in Real Estate Transactions: Roles and Responsibilities
Who is NOT likely to act as an escrow agent in a real estate transaction?
A) Real estate licensee
B) Title company representative
C) Attorney
D) Real estate broker
Answer:
A real estate licensee is unlikely to act as an escrow agent. Title company representatives, attorneys, and real estate brokers often serve as escrow agents, holding funds or documents until certain conditions are met. The correct option is real estate licensee.
Explanation: The individual who is NOT likely to act as an escrow agent among the given options is a real estate licensee. An escrow agent is a neutral third party responsible for holding funds or documents, or both, in a transaction until certain conditions are met. The parties involved in real estate transactions often use escrow agents to ensure a fair and smooth transfer of property.
Typically, escrow agents have a fiduciary responsibility and must be impartial. That's why title company representatives, attorneys, and real estate brokers may serve in this capacity. However, a real estate licensee usually refers to a salesperson or an associate broker who works under a managing broker, and isn't commonly empowered to hold escrow funds. Their primary role includes marketing properties and representing buyers or sellers, not handling the financial transactions. Therefore, they are not customarily escrow agents.
The correct option is real estate licensee.