What condition must be met for a title agency to handle an escrow related to a residential real estate transaction?

In a residential real estate transaction, a title agency must ensure that there is clear disclosure that no title insurer is providing protection if they are handling escrow services. This requirement is crucial because it ensures transparency and informs all parties involved about the lack of title insurance protection. This helps prevent misunderstandings and disputes regarding the security of the transaction and the responsibilities of the title agency.

If a title agency does not disclose that no title insurance will be provided, buyers and sellers could assume they have protection in case of title defects or claims, which may not be the case. Clear communication regarding the absence of title insurance protects the interests of the parties involved and aligns with regulatory standards that govern title agencies.

The other options, while potentially relevant in various contexts, do not specifically address the condition needed for a title agency to manage an escrow. Issuing a title insurance policy is unrelated to the initial handling of escrow, as some transactions may proceed without one. The completion of a home inspection typically pertains to the physical condition of the property rather than title issues. Lastly, while securing written consent from both buyer and seller is important in many aspects of real estate transactions, it does not specifically relate to the necessity of providing clear disclosure about the absence of title insurance in the context of escrow