Common Questions About Escrow
Escrow Service for the State of Washington
Below are many common questions about escrow.
If you have further quesitons, please call our Escrow Department at: 253-845-1120
What types of transactions go through escrow?
Most contracts that involve the transfer, lease or financing of real or personal property can be placed in escrow. You may be involved in escrow when you buy or sell a home, mobile home, or even a small business.
Why do I need escrow?
Whether you are the buyer or the seller, you want assurance that no funds or property will change hands until all of your instructions have been followed. With the increasing complexity of law and tax structures, it takes a trained professional to supervise the transaction and ensure those instructions are followed.
Who handles the escrow transaction?
Our escrow officers are trained and experienced professionals. They can provide you with the assistance required
to close your transaction quickly and effectively, under the terms of you instructions.
As a buyer entering into escrow, what must I do?
If the transaction is contingent upon a new loan, it is your responsibility to arrange this loan. Your real estate agent
can be most helpful in obtaining a lender, since he or she is more knowledgeable about which lenders are currently
active and their financing terms.
What happens at the closing?
When instructions of all parties to the escrow have been carried out, the closing can take place. All outstanding
funds are collected at this time and all costs must be paid. Title to the property will then be transferred. All specified
documents are recorded or filed at this time.
As a seller entering into escrow, what must I do?
To be fully prepared when you enter the transaction, you should have sufficient information relative to your ownership
available. This would include information concerning any loans, taxes, insurance and, if appropriate, rental data.
What if the transaction isn't completed?
Is my deposit refundable?
Who pays the fees?
When a transaction fails to close, a cancellation agreement must be reached between the parties. This cancellation
agreement must be put in the form of a written instruction. Since the deposit is part of the escrow contract, both the buyer and the seller must mutually agree to its disposition. Instructions for the disposition of this deposit should include, among other things, provisions for payment of charges incurred during the escrow. This would include fees and costs incurred by the escrow holder and charges such as loan processing and title insurance fees as specified in the escrow instructions.
