Escrow & Title
An escrow account in a real estate transaction is used to:
AHold the agent's commission until the next listing
BHold funds (such as earnest money or taxes and insurance reserves) by a neutral third party until certain conditions are met✓ Correct
CStore signed contracts for the lender's records
DCollect AREC licensing fees
Explanation
An escrow account is maintained by a neutral third party (escrow agent) to hold money or documents until specific conditions of a transaction are fulfilled. Common uses include holding earnest money and collecting tax and insurance reserves on mortgage loans.
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