Frequently Asked Questions about Escrow

Escrow serves as an impartial third-party process in which documents and funds are deposited by buyers, sellers and lenders to facilitate the closing for a real estate transaction. Escrow holds funds during a real estate transaction. This is a way to protect both the buyer and seller during the home purchasing process. For the seller, the purpose of escrow is to guarantee that the buyer has the funds needed for the purchase and that the money will be dispursed once the title is transferred. For the buyer, it guarantees that they won’t be scammed by a fraudulent seller who actually holds no claim to a title. The escrow process is required by law in the state of Washington.

The time required to close on a home depends on many variables, but an average closing timeframe is 30 days. This may be shorter or longer for a transaction involving more contingencies and special circumstances.

The cost of the escrow closing is typically split between the buyer and the seller, although this can vary depending on the terms of the sale.

The due date of your earnest money will be on your contract. It will say that your earnest money is due a certain number of days after “mutual acceptance”, which is the date on which the last person signed.

The selection of the escrow company is negotiable between Buyer and Seller. Ultimately the choice of the closing agent used is up to the Buyer and Seller to agree upon.

Escrow handles the preparation of legal documents, tabulation of figures, gathering of affidavits and documents to clear title, coordination of details between parties, facilitating customer signings, and receiving and disbursing funds. Escrow also works closely with the title insurance company. This creates a system to ensure all matters pertaining to the title report and legal documents are accurate and triple checked, thereby avoiding possible errors.

For customers, escrow is the point of contact for everything escrow and title related.

A Statutory Warranty Deed generally provides the greatest protection to the buyer. Under RCW 64.04.030, it conveys the property in fee simple and includes covenants by the grantor that, at the time of the conveyance, the grantor was lawfully seized of an indefeasible estate in fee simple, had the good right and full power to convey the property, and that the property was free from all encumbrances. The grantor also warrants the buyer's quiet and peaceable possession and agrees to defend the title against persons who may lawfully claim the property.

A Bargain and Sale Deed provides more limited protection than a Statutory Warranty Deed. Under RCW 64.04.040, a Bargain and Sale Deed conveys an estate of inheritance in fee simple and carries statutory covenants that the grantor was seized of an indefeasible estate in fee simple, free from encumbrances created or suffered by the grantor, and provides for quiet enjoyment against the grantor and the grantor's heirs and assigns, unless those covenants are expressly limited in the deed.

A Bargain and Sale Deed generally provides protection concerning the grantor's own ownership and actions during the grantor's period of ownership, rather than the broader title protection associated with a Statutory Warranty Deed. Bargain and Sale Deeds are sometimes referred to as Special Warranty Deeds and may be used in transactions where a full statutory warranty is not appropriate, including certain estate sales and foreclosure-related transactions.

A Quitclaim Deed provides the least protection regarding title. Under RCW 64.04.050, a Quitclaim Deed conveys and quitclaims to the grantee all of the grantor's then-existing legal and equitable rights and interests in the described real property. It does not contain warranties that the grantor owns the property, has good title, or has the authority to convey the property. Additionally, a statutory quitclaim deed does not convey after-acquired title unless the deed contains language expressing that intention.

A truly neutral closing agent is one that has no affiliation with other companies or interest in the transaction.

Mauseth legal is a TRULY NEUTRAL escrow company that never backs down from a challenge. We work hard to make your life easier from the day you sign your contract to closing and beyond. Our dedicated and responsive service is unmatched in the industry, so start your closing with us TODAY by filling out a form or calling our office and find out how we can help you.