Escrow & TitleIntermediateDelaware Exam

In Delaware, which of the following is TRUE about the escrow process in a residential closing?

AThe escrow agent represents the buyer exclusively
BThe escrow agent is a neutral third party holding funds and documents until all conditions are metCorrect
CEscrow agents in Delaware must be licensed real estate brokers
DEscrow is only required for purchase prices above $500,000

Why The escrow agent is a neutral third party holding funds and documents until all conditions are met Is Correct

Answer B: The escrow agent is a neutral third party holding funds and documents until all conditions are met

An escrow agent (typically a title company or attorney in Delaware) acts as a neutral third party, holding funds and documents and releasing them when all contractual conditions for closing have been satisfied.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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