Who is authorized to open and maintain escrow accounts?

The ability to open and maintain escrow accounts is specifically designated to brokers. This is because brokers have the necessary licensure and authority to handle client funds in a trust-like capacity. They are responsible for managing these funds according to relevant laws and regulations, ensuring that all transactions are conducted ethically and transparently. In this capacity, brokers must adhere to industry standards and legal requirements, which include keeping accurate records and providing necessary disclosures.

While licensed real estate agents can facilitate transactions, they typically operate under the supervision of a broker and do not have the authority to establish or manage escrow accounts independently. Clients themselves also do not have the authority to maintain these accounts, as they rely on licensed professionals to handle such financial aspects of real estate transactions. Real estate firms, while they may facilitate various aspects of transactions, function through their licensed brokers in managing escrow accounts. Therefore, brokers are the designated individuals who hold this responsibility within the real estate industry.