An escrow agent should provide the parties with a receipt for the escrow property, a copy of the escrow agreement and keep complete and accurate records. Depositors and beneficiaries have a right to a full accounting of the escrow agent's management of the escrow property. An escrow agent has the legal duty to comply strictly with the terms and conditions of the escrow agreement. Escrow property cannot be delivered to anyone, except in accordance with the provisions in the escrow agreement. An escrow agent who releases escrow property in violation of an escrow agreement is subject to money damages in a civil court action brought by any party who has suffered economic loss because of the agent's breach of duty.
Escrow agents can serve with or without compensation.
If an escrow agent expects to be paid for administering an escrow account or property, the matter of fees and reimbursement of expenses should be clearly set forth in the escrow agreement. An escrow agent can have no claim or lien on the escrow deposit for services rendered, unless the escrow agreement provides otherwise. The escrow agent is simply a custodian of the escrow property, which must be paid out as the escrow agreement provides. Not in all cases, but escrow agreements should require interest-bearing accounts when escrow funds can generate significant interest for one or more of the parties. Interest earned on these IOLA accounts is pooled and used to finance civil legal services for the poor.