Understanding escrow and title
Escrow holds money and instructions until every condition is met. Title work confirms the seller can legally transfer the home to you. Knowing the flow makes closing simple.
What escrow does
- Holds your earnest money and lender funds safely.
- Follows the contract instructions from both sides.
- Coordinates payoffs, prorations, and final figures.
What a title search checks
- Ownership history and recorded deeds.
- Liens, judgments, or unpaid taxes that must be cleared.
- HOA and municipal requirements that affect closing.
Title insurance basics
- Lender policy Required when you finance a home.
- Owner policy Optional but wise to protect your equity.
- One time premium Paid at closing, not monthly.
How you keep things on track
- Wire funds only using trusted instructions from your title or escrow company.
- Provide HOA contact details early for estoppels or resale packages.
- Clear name issues by sending any requested documents quickly.