Question

Which of the following is established by an escrow agreement?

Select one:
a. A seller's obligation to transfer a piece of real estate to a buyer in exchange for a specified sum of money
b. A buyer's right to purchase a property and a seller obligation to sell the property to the buyer
c. A real estate brokers obligation to promote and assist in the sale of another party's property
d. A third party trust account which holds money deposited by a buyer of a property and then, at a specified point in the future, distributes that money to a designated beneficiary related to the property transaction

Answer 1

An escrow agreement is established to create a third-party trust account which holds money deposited by a buyer of a property and then distributes that money to a designated beneficiary related to the property transaction. It ensures a secure and reliable transaction.

Step-by-step explanation:

An escrow agreement is established to create a third-party trust account which holds money deposited by a buyer of a property. This money is then distributed to a designated beneficiary related to the property transaction at a specified point in the future. The escrow agreement ensures a secure and reliable transaction by holding the funds until all conditions are met.