In real estate contracts, name the title company as the escrow agent, not an individual employee, to protect your earnest money and avoid confusion.


You’re filling out a real estate contract, everything’s moving smoothly, and you reach the escrow agent section. In a hurry, you write down an employee’s name from the title company—maybe someone you’ve worked with before. It seems harmless, right? Wrong.

Why is this a problem? Listing an individual employee instead of the title company can lead to delays, confusion, and even legal issues. Imagine if that employee suddenly leaves or changes roles—your contract is stuck in limbo. And who’s responsible for the earnest money now? You could be facing a real headache that’s avoidable.

“By listing the title company, not an individual, as the escrow agent, you protect your contract from delays, legal issues, and future complications.”

What is the solution? Next time, when naming the escrow agent, list the title company—like “Alamo Title” or “Chicago Title.” If you have a preferred closer, no problem. Add their name after the title company (e.g., “Alamo Title / Jane Doe”). This way, the title company remains responsible, and you avoid any potential issues if the employee leaves.

Why does this matter? According to the Texas Real Estate Broker-Lawyer Committee, the contract clearly defines the term “Escrow Agent.” It always refers to a title company or sometimes an attorney—but never to an individual employee. Making this minor adjustment ensures your contracts are legally sound, and you won’t be caught off guard if the closer changes roles.

The good news? This is an easy fix that you can make right now. Next time you fill out a contract, double-check the escrow agent section. You protect yourself and your client from future complications by ensuring it’s the title company’s name and not an individual’s.

Mistakes like this always happen, but you can avoid them with extra attention. If unsure, please contact me at (210) 305-5665 or missy@msrpsa.com. Asking a quick question now can save you time and stress later. So, double-check that escrow agent section and ensure you’re doing it right—your clients will thank you.