Which of the following is a role of an escrow agent?

The role of an escrow agent is primarily to supervise the release of funds upon the completion of specific contractual obligations. This involves holding the funds in a secure account until all parties have fulfilled the necessary conditions outlined in the contract. Once those conditions, often pertaining to the sale or transfer of property or services, are verified as complete, the escrow agent is responsible for appropriately disbursing the funds to the relevant party.

This function is crucial in transactions where trust is essential; it ensures that neither party is at a disadvantage, as the funds are only released when all conditions are met. In doing so, the escrow agent serves as a neutral third party, providing security and assurance to both the buyer and the seller throughout the transaction process.

The other options, while related to financial transactions, do not align with the specific responsibilities of an escrow agent. For instance, the collection of fees for services rendered involves a different type of financial management. Similarly, negotiating terms requires active engagement in the transaction’s terms, contrary to the escrow agent's role as a neutral party solely facilitating the agreement. Providing loans to businesses also falls outside the scope of an escrow agent's functions, as their primary responsibility revolves around managing the funds during a specific transaction rather than financing.