An escrow agent is a neutral third party that holds funds or assets on behalf of two parties involved in a transaction. Their primary role is to ensure that the terms of the agreement are met before releasing the funds or assets. This process helps protect both the buyer and seller by providing security and trust during the transaction. Typically used in real estate deals, the escrow agent collects the buyer's deposit and holds it until all conditions are satisfied. Once everything is in order, the agent disburses the funds to the seller and transfers ownership to the buyer, completing the transaction smoothly.