Escrow and Title

What Is Escrow?

Once your offer is accepted, you're officially "in escrow." This means a neutral third party — the escrow company or escrow officer — holds funds and documents while the conditions of the sale are met. The escrow company doesn't work for you and doesn't work for the seller. It works for the transaction itself, following instructions from both parties and their agents.

Think of escrow as the controlled handoff. Your money goes in, the seller's deed comes out, and the escrow company makes sure both sides hold up their end before anything changes hands.

The mechanics differ slightly, but the function is the same: neutral facilitation of the transaction.

The Escrow Timeline

Here's what typically happens during escrow on a 30-day purchase:

Days 1–3: Earnest money deposit is wired to escrow. Inspection period begins. Buyer submits loan application to lender (if not already done).

Days 3–10: Inspections are completed. Buyer reviews inspection reports. Buyer may request repairs or credits (negotiated between the parties during this window).

Days 10–15: Lender orders appraisal. Title company begins title search.

Days 15–20: Appraisal is completed and reviewed. If appraisal comes in at or above purchase price, the appraisal contingency is satisfied. If it comes in below, negotiations resume.

Days 20–25: Lender completes underwriting. "Clear to Close" (CTC) is issued — this is the magic phrase that means underwriting has approved everything and you're heading to closing.

Days 25–28: Escrow prepares final closing documents. Buyer receives Closing Disclosure at least 3 business days before signing (federal law). Buyer reviews CD and confirms all numbers.

Days 28–30: Final walkthrough of property. Closing funds are wired to escrow. Documents are signed (either in person or via remote online notarization). Escrow records the deed with the county.

Day 30 (or per contract): Sale closes. Keys are transferred. You own a house.

Understanding Title

Title is the legal concept of ownership. When you buy a home, the title is transferred from the seller to you. Before that happens, the title company performs a title search — a review of public records going back decades (sometimes centuries) to verify that:

• The seller actually owns the property
• There are no liens or encumbrances that aren't being paid off through the sale (a lien is a legal claim against the property for money owed — back taxes, unpaid contractor bills, a judgment against the owner)
• There are no competing ownership claims
• There are no easements, covenants, or restrictions that would materially affect your use of the property

The title search isn't perfect. Records can have errors, forgeries, old liens that were paid but not properly released, and other issues that won't show up in a standard search. This is why you purchase title insurance.

Title Insurance — Two Kinds

Lender's title insurance protects your lender's interest. It's required on virtually every financed purchase. The premium is typically paid once at closing.

Owner's title insurance protects you. If a title defect shows up after you close — an heir surfaces claiming an ownership interest, a lien that was missed in the title search, an error in an old deed — your owner's title policy pays to defend your ownership and compensates you for losses. This is not an optional expense. Get it.

In most transactions, the cost of owner's title insurance is relatively modest — a few hundred to a couple thousand dollars depending on the purchase price. It protects you for as long as you own the property. It's one of the best deals in real estate.

The Preliminary Title Report

Before closing, the title company will issue a Preliminary Title Report (PTR) — sometimes called a title commitment. This document lists all the conditions, exceptions, and items that will appear in your title policy. Read it. Ask your agent to walk you through any items you don't understand.

Anything that doesn't resolve before closing will appear as an "exception" in your title policy — meaning the insurer won't cover claims arising from those specific items. Understand what exceptions mean for your use of the property before you close.

What the Escrow Officer Does

The escrow officer is not your agent. They're neutral. If you have questions about the terms of your deal, those go to your real estate agent. If you have questions about your loan, those go to your lender. The escrow officer executes, they don't advise.

Remote Online Notarization (RON) — Digital Closing

One of the significant changes since 2015 is the widespread adoption of remote online notarization. As of 2026, most states allow RON for real estate closings (a few still require physical presence — confirm with your title company).

With RON, you sign your closing documents on your computer or tablet, a notary witnesses your signature via live video, and the documents are digitally notarized and encrypted. This eliminates the need to physically appear at a title or escrow office — you can close your loan from your kitchen table, or from across the country.

If you're buying a home remotely, relocating, or just have scheduling constraints, ask your lender and title company upfront whether RON is available. It's becoming the norm, not the exception.