An agent must account for all money and property that comes into his or her possession. Typically what we are referencing are the earnest money deposits. State laws regulate when the brokerage firm must enter the earnest money into an escrow or trust account.
The earnest money deposit is what says that you are serious about your proposal to buy a house.
Proposal? What comes to mind when you think of proposals?
That's right, marriage!
An earnest money deposit functions the same as an engagement ring. It is there to show that you are serious about your offer, and if during that escrow period, if something falls through, you can lose your deposit.
And yes, that means when the bride and groom say "I do," escrow is closed!