Escrow vs. Title In Washington Real Estate

Ever wonder who actually holds your money and who protects your ownership when you buy or sell a home in Kirkland? You are not alone. The terms escrow and title sound similar, yet they do very different jobs in a Washington real estate closing. In this guide, you will learn what each one does, how they work together in King County, what to expect for costs and timing, and how to protect yourself from wire fraud. Let’s dive in.

Escrow vs. title: the basics

Escrow handles the closing and the money. A neutral escrow company holds earnest money, collects signed documents and final funds, follows written instructions, coordinates payoffs and prorations, and sends the deed and mortgage to record. After recording, escrow distributes proceeds and final statements.

Title researches and protects ownership. A title company examines public records to confirm who owns the property and to identify liens, easements, or other issues. The title company issues title insurance policies that protect lenders and, if purchased, owners against covered past defects, subject to policy terms.

The key difference: escrow coordinates the process and funds, while title confirms and insures legal ownership. Many companies offer both, but the roles are distinct.

How escrow works in Washington

In a typical Washington transaction, escrow opens after buyer and seller have a signed purchase agreement. Within a few business days, escrow receives the earnest money and sets up the file. From there, the escrow officer follows the contract and closing instructions from all parties.

Common escrow tasks include holding funds, collecting signatures, coordinating payoffs to the seller’s lender, arranging prorations for taxes and HOA dues, ordering recording of the deed and mortgage, and disbursing money after recording. Escrow is neutral and does not make legal decisions about ownership.

How title works and insurance

Title work begins with a search of public records, including deeds, mortgages, liens, judgments, plats, easements, and tax information. The title company issues a preliminary title report or commitment that lists what it will insure, what exceptions apply, and what must be cleared before closing.

Two policies are common at closing:

• Lender’s title policy, required by the lender when there is a loan.
• Owner’s title policy, optional for the buyer but often recommended to protect against certain covered defects.

Title insurance is a one-time premium paid at closing. An owner’s policy typically remains in effect as long as you or your heirs have an interest in the property, subject to the policy terms and exceptions.

Kirkland closing timeline

• Opening escrow. After mutual acceptance, escrow is usually opened within 1 to 3 business days, and earnest money is deposited per the contract.
• Title search and report. A basic title search can take a few days. Complex issues, like old liens or probate matters, can take longer.
• Contingencies and underwriting. Inspections, financing, and other contingencies often run in parallel. Your lender will require certain title conditions to be met before issuing clear to close.
• Closing and recording. Escrow collects final funds and signatures, sends the deed and mortgage for recording, and coordinates all disbursements. In King County, recording often occurs the same day or within a few business days depending on volume.
• Post-closing. Final title policies and recorded documents are delivered after recording, often within 7 to 30 days.

Costs and who pays

Your final closing statement will include several title and escrow related items. Common line items include escrow or closing fees, title search and report fees, title insurance premiums, recording fees, prorations for taxes and HOA dues, and payoffs to lienholders. Lender fees and third-party loan costs also appear on the statement but are separate from title and escrow services.

Who pays what can follow local custom or be negotiated in the purchase agreement. In many cases, the borrower pays the lender’s title policy. The owner’s policy and escrow fees are often negotiated or split. The Washington Real Estate Excise Tax is typically a seller responsibility. Always confirm current rates and local practice with your escrow or title provider, your lender, and the Washington Department of Revenue.

Common title issues in King County

Title searches may flag items that need attention before closing. Common examples include open liens or judgments, unreleased mortgages, boundary or easement disputes, HOA liens, or probate requirements for estate sales.

Resolution options include curing the issue before closing, using an escrow holdback to resolve after recording, requesting endorsements to adjust coverage, or delaying closing for legal steps like probate. Your title company will outline the requirements in the preliminary commitment.

Wire fraud safety

Wire fraud is a real risk in real estate. Protect your funds with a few simple steps:

• Verify wiring instructions by phone using a known, independently verified number. Do not rely on phone numbers in email.
• Confirm final wire details in person or by a separately obtained phone call to your escrow officer.
• Never send funds or personal information in response to email-only instructions.
• Ask about secure portals, two-factor verification, and written confirmation procedures.
• Request written confirmation that escrow received your wire.

Choosing escrow and title locally

When selecting providers in King County, consider the following:

• Licensing and consumer history. Confirm the company is properly licensed in Washington and review any complaints with the state regulator.
• Local experience. Look for strong familiarity with King County recording practices, plats, HOAs, and common local issues.
• Clear fee estimates. Ask for an itemized estimate early, including title premiums, escrow fees, recording, and lender-required items.
• Communication and security. Understand how the team will communicate and protect your funds.
• Integration. If different firms will handle title and escrow, ask how coordination will be managed.

What you need to provide

To keep your Kirkland closing smooth, be ready with:

• Government-issued photo ID
• Signed purchase agreement and addenda
• Proof of earnest money deposit
• Payoff information for any existing loans
• Homeowner’s insurance binder
• HOA documents and contacts, if applicable
• Wire instructions for funds to close and bank confirmations
• Property tax account number and recent statements

Local records and offices

If you want to verify details or check current fees and taxes, start with these offices and organizations:

• Washington State Department of Financial Institutions (escrow and title licensing)
• Washington State Department of Revenue (Real Estate Excise Tax rules and rates)
• King County Recorder or Archives (recorded deeds, liens, and recording fees)
• King County Department of Assessments (parcel data and assessments)
• Consumer Financial Protection Bureau (federal closing disclosure and wire fraud guidance)
• Washington REALTORS (forms and common local practices)

Ready to plan your closing?

Understanding the difference between escrow and title helps you make clear decisions and avoid surprises. If you are buying or selling in Kirkland or nearby King County communities, you deserve a calm, predictable process supported by experienced partners. For a step-by-step plan tailored to your timeline, connect with Becca Locke.

FAQs

What is the difference between escrow and title in a Washington home purchase?

• Escrow manages the closing logistics and funds, while title researches public records and issues insurance to protect against covered ownership defects.

Who chooses the escrow and title company in Kirkland transactions?

• The provider is typically agreed upon in the purchase contract and can be proposed by either side, with local custom and negotiation guiding the final choice.

How long does an owner’s title policy last in Washington?

• An owner’s policy is a one-time purchase at closing and typically remains in effect as long as you or your heirs have an interest in the property, subject to policy terms.

Who usually pays for title insurance and escrow fees in King County?

• The borrower usually pays the lender’s policy, while the owner’s policy and escrow fees are negotiable and may follow local custom; confirm specifics in your contract.

What happens if a title issue appears late in escrow in Washington?

• Parties can extend deadlines, negotiate cures, use escrow holdbacks, or cancel if allowed by the contract, depending on the issue and timing.

How can I avoid wire fraud during my King County closing?

• Confirm wiring instructions by phone using a known number, avoid email-only directions, use secure portals, and request written confirmation when escrow receives your funds.