Who is responsible for opening the escrow account in a real estate transaction?

The principal broker is responsible for opening the escrow account in a real estate transaction because they hold a license and have the authority to manage and oversee the escrow process. In Virginia, the principal broker is typically the individual who has the fiduciary responsibility to handle transactions and ensure compliance with state regulations.

The escrow account serves as a neutral holding area for funds and documents involved in the transaction, such as earnest money. This ensures that funds and documents are handled appropriately until all parties fulfill their contractual obligations. It is crucial that a licensed professional, such as the principal broker, oversees this process to maintain compliance with legal and ethical standards in real estate.

In contrast, the buyer, seller, and unlicensed assistants do not have the legal authority or responsibilities to open or manage an escrow account. The involvement of a qualified and licensed broker helps protect the interests of all parties involved in the transaction.