A Massachusetts Escrow Agreement is a legally binding contract between two parties in which a third party holds a property or money in trust until the terms of the contract are met. The money or property in an escrow account is held by the escrow agent, who acts as a neutral third party and makes sure that all the contract's requirements are fulfilled. There are two main types of Massachusetts Escrow Agreements: Residential Escrow Agreements and Commercial Escrow Agreements. A Residential Escrow Agreement is an agreement between a homeowner and a lender, in which the lender agrees to put a certain amount of money in an escrow account for the purpose of paying the homeowner's taxes and insurance premiums. The lender holds the funds until the homeowner pays the required amounts. A Commercial Escrow Agreement is used when two businesses are involved in a transaction in which one party needs to make a payment to the other. The escrow agent holds the funds until both parties agree that the transaction has been completed to their satisfaction. The escrow agent then releases the funds to the appropriate party. In both types of Massachusetts Escrow Agreement, the escrow agent is responsible for ensuring that all the contract's requirements are met and that the funds are handled properly. The escrow agent is also responsible for keeping accurate records and providing any necessary documentation for the transaction.