What does an escrow agent do?

What does an escrow agent do?

John Caliendo (Realtor) gives expert video advice on: How do I make an offer on a new home?; Can I withdraw an offer I've made on a home? and more...

When buying a home, an escrow agent, licensed by the state is there to be the neutral third party. For example, what I mean is that if you as a buyer were to give a deposit directly to a seller and then God forbid there was some dispute arising in this transaction; it may not easy to recoup your deposit back from the seller. Whereas, if you're giving it to a neutral third party, the escrow agent/ company, your odds increase exponentially of getting that deposit for that house back.