What condition must be fulfilled for an escrow account to release funds?

The requirement that all conditions of the transaction must be met before funds are released from an escrow account is critical in ensuring that both parties fulfill their obligations. This principle is grounded in the purpose of an escrow account, which is to safeguard funds until all necessary conditions of a real estate transaction are satisfied and both the buyer and seller can confidently proceed.

By ensuring that all conditions are met—such as the completion of necessary inspections, the fulfillment of contractual agreements, or the approval of financing—escrow agents can mitigate the risk of disputes and protect the interests of both parties involved. Releasing funds prematurely, without confirming that all stipulated requirements are satisfied, could lead to legal issues or financial losses. Thus, the correct condition stresses the importance of comprehensive compliance before any disbursement occurs from the escrow account.