What must an escrowee demonstrate to fulfill their fiduciary duty?

To fulfill their fiduciary duty, an escrowee must demonstrate reasonable care and skill in following instructions. This responsibility is fundamental to the role of an escrowee, as they act as a neutral third party, entrusted with the management of funds and documents involved in a real estate transaction. The ability to follow the specific terms outlined in the escrow agreement ensures that the interests of both parties are protected and that the transaction proceeds smoothly.

The fiduciary duty involves acting in the best interests of the parties involved and maintaining impartiality. This is achieved by adhering closely to the established guidelines and instructions provided in the escrow agreement, which may include handling deposits, disbursing funds, and ensuring that all necessary documents are in order before closing.

While expertise in real estate law and financial management can enhance an escrowee's ability to perform effectively, the core requirement remains the competent execution of their agreed duties in accordance with the instructions provided.