Escrow & TitleIntermediateDelaware Exam

What is the role of the escrow agent in a Delaware real estate closing?

ASimply to personally negotiate the final purchase price directly between the buyer and seller, though specifics can vary by situation
BTo hold funds and documents in trust and disburse them according to the escrow instructions upon satisfaction of closing conditionsCorrect
CTo provide the buyer's mortgage financing
DTo perform the title search on behalf of the parties

Why To hold funds and documents in trust and disburse them according to the escrow instructions upon satisfaction of closing conditions Is Correct

Answer B: To hold funds and documents in trust and disburse them according to the escrow instructions upon satisfaction of closing conditions

The escrow agent (typically an attorney in Delaware, an attorney closing state) holds funds (earnest money, down payment, loan proceeds) and closing documents in trust. When all conditions of the purchase agreement are met, the escrow agent disburses funds to appropriate parties and records the deed.

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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