What is escrow?
Escrow is a neutral process used to coordinate money, signed documents, lender instructions, title requirements, and the transfer of ownership. The escrow holder follows the written purchase agreement and escrow instructions; the lender, title company, agents, buyer, and seller each have separate responsibilities. Escrow does not replace your responsibility to read documents and meet contract deadlines.
Common milestones after acceptance
- Escrow is opened. The contract and opening information are delivered, an escrow number is assigned, and the parties receive instructions.
- Deposit is delivered. Follow the contract and escrow holder's written instructions. Independently verify any wiring instructions by calling a known phone number before sending funds.
- Disclosures and title are reviewed. Read the seller disclosures, preliminary title report, natural-hazard information, and HOA documents if applicable. Ask questions promptly.
- Inspections and investigations are completed. Schedule qualified inspectors, review reports, and decide whether more information or negotiations are needed within the contract timeframes.
- The lender processes the loan. Provide requested documents quickly, cooperate with appraisal access, and avoid new debt or unexplained deposits.
- Conditions and contingencies are addressed. Track dates in the contract. A contingency is not automatically removed just because time has passed; follow the agreement and written notices.
- Closing figures and documents are prepared. Review estimated and final settlement figures, verify cash-to-close instructions, and ask about any unexplained charge.
- Signing, funding, and recording occur. After required funds and documents are received, the deed is submitted for recording. Confirm recording and possession with escrow and the agents.
What should buyers do during escrow?
- Respond to lender, escrow, and title requests by the stated deadline.
- Keep utilities on for inspections when requested and coordinate access.
- Review all disclosures and reports; do not rely only on verbal summaries.
- Confirm insurance coverage and premium before the lender's deadline.
- Review the Closing Disclosure against the Loan Estimate and ask the lender to explain differences.
- Complete the final walk-through and confirm agreed repairs and included items.
What should sellers do during escrow?
Complete agreed repairs or obligations on time, provide requested information, keep the property in the agreed condition, maintain utilities as required, coordinate access, and notify the appropriate professionals of changes that may affect title or closing. Do not cancel utilities or remove fixtures that are included in the agreement.
Protect yourself from wire fraud
Real estate transactions are targets for payment-instruction scams. Never rely on last-minute email changes to wiring instructions. Call escrow using a phone number you independently obtained from verified paperwork or the company's official website. Confirm the recipient, account details, and amount before sending. If anything seems unusual, stop and verify.
Before closing day
Confirm signing appointments, identification requirements, final funds, insurance, possession, keys, and recording procedures. Do not assume the transaction is closed merely because documents have been signed; ask escrow to confirm funding and recording.
Your signed contract controls the deadlines and obligations. Contact escrow, your lender, or an attorney for questions within their professional roles.