What does Escrow Agent mean when you Rent to Own a house?
Last modified December 21, 2021An Escrow Agent is a Company or natural person who holds the Tenants deposit on a rental property. This can also be called a Lease deposit. The Escrow Ageny may also be required to hold various documents having to do with the rental agreement or the Lease with Option to Buy Agreement until the terms of the Rental Contract or Rental Agreement has been satisfied by the Tenant. A valid Escrow is set up when a binding and enforceable agreement or contract has been signed by all Paries of the Contract and funds have been deposited by the Escrow Holder or Escrow Agent.
In the case of a Lease with Option to Buy Contract, the Escrowed funds, that the Escrow Agent holds from the Tenant maybe able to be used to fund the Tenants mortgage loan closing costs or down payment, depending on the terms of the Rent to Own agreement.