DESIGNATING THE ESCROW HOLDER/AGENT
The selection of an escrow holder/agent may not be critical to the principals in a real estate transaction. In the
past, real estate brokers have played a large role in deciding where such transactions would be escrowed. In
recent years, there has been an increasing effort on the part of federal and state regulators to minimize the
influence of the real estate broker in selection of the escrow holder. The rationale is that buyers and sellers have
the right, and should have the opportunity, to compare escrow holders, escrow services and charges and, if they
so desire, negotiate among themselves as to where escrow will be held and conducted. In addition, the buyers
and the sellers (as principals to the escrow) may wish to assert independent control over the preparation of the
escrow instructions.