Final answer:
An escrow agent typically reviews the Title Report, the Earnest Money Agreement (REPC), and the Owner's Policy in a real estate transaction. They handle fund transfers, document security, and sometimes ongoing expenses like home insurance and property taxes.
Step-by-step explanation:
An escrow agent has several responsibilities in a real estate transaction, among which are reviewing important documents that affect both the buyer and seller. These documents can include (A) the Title Report, which provides detailed information about the property's ownership history and any existing liens or encumbrances; (B) The Earnest Money Agreement (REPC), which outlines the terms of the sale and includes the earnest money deposit details; and (C) The Owner's Policy, which is an insurance policy protecting the buyer from any title issues that may not have been discovered during the title search.
Items such as (D) Certificate of Apportionment, which is related to how property taxes are divided among multiple parties, and (E) Letters of Testamentary, which are issued by a probate court to authorize an executor to act on behalf of a deceased person's estate, may not necessarily be reviewed by an escrow agent as they serve specific purposes that may not be applicable in all real estate transactions.
Understanding escrow is essential when buying a home. Not only do escrow services include holding funds and important documents to facilitate the transfer of property ownership, they may also manage ongoing expenses such as home insurance and property taxes to ensure these are paid on time as part of a homeowner's monthly payment.