Is Escrow Agent the Same as Closing Agent?
When you are buying a new home, there are many details that need to be managed throughout the process. Sometimes you will need multiple people/companies to help you with different aspects of the purchase. For this blog we will be focusing on escrow agents and closing agents.
An escrow agent is a neutral third-party that is responsible for protecting your earnest money – the funds you invest to show the seller that you are truly interested in purchasing the property. The escrow agent will manage these funds for you as the closing process is completed. The escrow agent must act on behalf of the best interests of both parties: the buyer and the seller.
A closing agent is another neutral third-party that manages the entire process of homebuying on your behalf. The closing agent will handle such details as:
- Title searches (identify any liens, judgements, check ownership, etc.)
- Title insurance (for protection against legal claims made on the property)
- Tax benefit assistance (1031 Exchanges)
- Paperwork completion
- Loan closings
- Transfer and file the deed
- Escrow instructions (coordinating the release of earnest money)
The closing agent may also act as your escrow agent. Some title companies offer both services under one umbrella to make the process more seamless. Clear Title, a title company in Pensacola, Florida, offers escrow services – even if you do not choose to close with them. However, if you want to simplify the closing process and reduce the number of third parties involved, Clear Title offers a full range of services: real estate/loan closings, title searches, title insurance quotes, escrow services and 1031 Exchanges. Clear Title is led by Board Certified Real Estate Attorney Stephen R. Moorhead. The team has 100s of years of combined experience with title services.
The bottom line: an escrow agent is not technically the same as a closing agent – but they can be the same person/company! Just make sure you choose a reputable company to handle this very large investment on your behalf.
To schedule a meeting with the closing experts in Pensacola, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.