Kovats Real Estate School Practice Test 2025 – The All-in-One Guide to Master Your Real Estate Exam Success!

The release of funds held in escrow is typically triggered by the agreement of all parties involved in the transaction. Escrow is designed to ensure that the interests of both the buyer and seller are protected during a real estate transaction. When all parties, including the buyer, seller, and any other relevant stakeholders, agree that all terms of the contract have been met, the escrow agent can then release the funds. This agreement often reflects that conditions such as inspections, final paperwork, or contingencies have been satisfied.

While the completion of a property appraisal, final approval of loan documents, or verification of the buyer's identity are important components of a real estate transaction, they do not independently trigger the release of escrow funds. Each of these steps may lead to the final agreement among the parties, but it is the consensus and mutual agreement that serves as the direct catalyst for the release of the funds.