When making a check to an escrow agent, who should it technically be made out to according to the law?

In the context of real estate transactions and the handling of escrow funds in Washington State, checks made to an escrow agent are typically made out to the licensee's firm. This practice ensures that all funds are managed under the umbrella of the firm, which holds the responsibility for proper accounting and adherence to state regulations regarding funds handling. It allows for better tracking of transactions, accountability, and proper record-keeping.

When the check is made out to the licensee's firm, it underscores the fiduciary responsibility the firm has towards both the buyer and the seller. This arrangement helps prevent potential conflicts of interest and protects all parties involved in the transaction. In contrast, checks made out to individuals, like the buyer or the seller, could complicate the escrow process and potentially lead to issues with the handling of funds or compliance with the law.

By ensuring that all financial transactions in the real estate process are routed through the licensee's firm, the system maintains a formal structure that prioritizes transparency and adherence to legal requirements. Thus, making the check out to the licensee's firm is the correct and legally compliant choice.