Buying a home in Washington comes with a new term you may not have seen before: escrow. If you are searching in Mukilteo or wider Snohomish County, understanding escrow will help you feel confident from offer to keys. You want a smooth closing, clear next steps, and no last‑minute surprises. In this guide, you will learn what escrow is, who is involved, the timeline, what you pay, and local tips for our area. Let’s dive in.
Escrow in Washington: the basics
Escrow is a neutral process where a licensed third party holds funds and documents until each step of your purchase is complete. The escrow holder follows written instructions from you, the seller, and your lender if you have a mortgage. When all conditions are met, escrow coordinates recording and disburses funds so ownership can transfer.
In Washington, licensed escrow companies or title companies typically serve as the escrow holder. These companies are regulated by the Washington State Department of Financial Institutions. Your escrow team handles trust accounting, coordinates document signing and recording, and issues your final settlement statement.
Who is involved in a Mukilteo escrow
Several players work together to close your home purchase:
- Buyer: You deliver earnest money, complete inspections, meet loan conditions, and sign closing documents.
- Seller: The seller signs transfer documents, provides disclosures, and addresses any required title items.
- Escrow agent or title company: This neutral party holds funds, orders the title search, prepares the closing statement, coordinates recording, and disburses money at closing.
- Lender: If you have a mortgage, the lender manages underwriting, orders the appraisal, and funds the loan when conditions are satisfied.
- Real estate agents: Your agent and the listing agent negotiate the contract and help keep everyone on track.
- County offices: In Snohomish County, the Auditor records the deed, and the Assessor and Treasurer manage property tax assessments and collections.
Escrow timeline in Snohomish County
Every contract is unique, but many Puget Sound home purchases use a 30 to 45 day escrow. Shorter or longer periods can be negotiated. Here is what to expect.
Day 1: Offer accepted and opening escrow
Once you reach mutual acceptance on a signed Purchase and Sale Agreement, your agent sends the contract to the chosen escrow or title company to open escrow. Escrow assigns a file number and confirms receipt of the agreement and earnest money instructions.
Earnest money and escrow instructions
You will deliver earnest money according to the contract. Escrow holds these funds in a trust account. The purchase agreement and any escrow instructions spell out when the money is applied, refunded, or forfeited.
Title search and preliminary title report
Escrow or the title company orders a title search. You and your lender receive a preliminary title report that shows ownership history, easements, liens, judgments, and other recorded items. If something must be cleared, such as a lien or unpaid taxes, escrow coordinates the payoff or required documentation before closing.
Inspections and contingencies
During due diligence, you schedule your inspections and review findings. You may request repairs or credits based on your inspection contingency. At the same time, your lender moves your loan through underwriting and orders an appraisal. The appraisal must support the loan amount, and your financing contingency outlines deadlines and protections.
Loan documents and Closing Disclosure
Your lender prepares final loan documents and provides your Closing Disclosure at least three business days before closing on most mortgage loans. This timing is important because escrow cannot finalize funding until those disclosures have been delivered and the waiting period has passed.
Final walkthrough and signing
You complete a final walkthrough to confirm the home’s condition is as agreed. You and the seller sign closing documents, typically at the title company. Remote or mobile signing may be available when permitted.
Funding, recording, and keys
When the lender releases funds and all documents are signed, escrow records the deed with the Snohomish County Auditor. Once recording is confirmed, escrow disburses funds to the seller and any lienholders. You receive keys and take possession per the terms in your contract. Possession can be the same day or at a later time if negotiated.
What you pay at closing
Your exact costs depend on your loan, property type, and contract terms. Here are common items for Washington buyers.
- Earnest money: Your deposit shows good faith. If you close, it is typically applied to your closing costs or down payment. If you cancel under a valid contingency within deadlines, you may be entitled to a refund. If you default after removing contingencies, the seller may be entitled to the deposit under the contract.
- Lender fees: You usually pay loan-related charges, which can include origination, underwriting, appraisal, and prepaid interest.
- Title insurance: A lender’s policy is required for most mortgages. An owner’s policy is optional but recommended to protect your ownership. Who pays which policy varies by local custom and negotiation.
- Escrow fees: Escrow charges for handling funds and documents. These fees are often split between buyer and seller, but your contract controls.
- Recording fees: Snohomish County charges to record the deed and, if applicable, the mortgage. Escrow will estimate these based on the county’s schedule.
- Property tax prorations: Taxes are prorated between you and the seller based on the closing date and the county tax calendar.
- Real Estate Excise Tax (REET): In Washington this tax is generally paid by the seller at closing, though terms can be negotiated. Rates and any local surcharges are set by the state and may vary.
If you are buying a condo or in an HOA, expect potential fees for HOA documents or estoppel letters. These are often time sensitive and can affect your closing schedule if not handled promptly.
Title and title insurance made simple
The title search gives you a picture of the property’s legal status. It shows the history of ownership and any recorded items that affect use, such as easements or covenants. Escrow works with the title company and the seller to clear issues like unpaid taxes or recorded liens before you close.
- Owner’s title insurance: This one‑time premium at closing protects you from covered title defects that existed before you bought the home. It is optional but strongly recommended for peace of mind.
- Lender’s title insurance: Required by most lenders to protect the mortgage. This policy does not protect you, which is why many buyers also choose the owner’s policy.
If a serious title problem is discovered late, escrow may delay recording until the issue is cured. If it cannot be resolved, you and the seller may need to amend terms or cancel according to your contract.
Local Mukilteo tips that keep you on track
- Plan for 30 to 45 days: Many Snohomish County escrows fit this window. If you need a faster close, confirm with your lender and the listing agent before you write the offer.
- Watch contract timelines: Inspection, financing, appraisal, and title review deadlines protect your deposit. Put reminders on your calendar on day one.
- Build in HOA time: For condos or HOA communities, factor in the time to gather resale certificates, budgets, rules, and estoppel statements. Delays here can push closing.
- Coordinate permits and special systems: If your purchase involves items like septic, waterfront features, or recent remodels, verify permits and approvals early with the City of Mukilteo or Snohomish County as needed.
- Ask for fee estimates: Your escrow company can provide a good faith estimate of escrow and recording fees once your contract is opened, and your lender will estimate loan costs.
Protecting your earnest money
Your contingencies are your main protection. Common buyer protections include inspection, financing, appraisal, and title review. Meet each deadline and provide any required notices in writing. When you remove a contingency, your earnest money is more at risk if you later default.
Escrow remains neutral and follows written instructions. If a dispute arises about who should receive the earnest money, the escrow company may require a mutual release or a court order to disburse the funds. Escrow agents in Washington follow strict trust accounting rules and are regulated by the state.
A simple escrow checklist
Use this quick list to stay organized from offer to keys.
- Review your executed contract and all deadlines on day one.
- Deliver earnest money to escrow as instructed and keep proof of delivery.
- Schedule inspections promptly and review results with your agent.
- Provide lender documents quickly and monitor appraisal timing.
- Read your preliminary title report and ask questions about any exceptions.
- Review your Closing Disclosure within the required timeline.
- Complete a final walkthrough before signing.
- Bring valid ID and any required funds to signing.
- Confirm recording and possession timing with your agent.
Buying in Mukilteo or nearby, you deserve a calm, clear path to closing. With the right plan, escrow becomes a straightforward set of steps that protect you and your investment. If you would like a local partner to guide you through each milestone, reach out to Kelli Leese for buyer representation and step‑by‑step support.
FAQs
When is escrow opened in a Washington home purchase?
- Escrow opens after you have a signed purchase agreement and the escrow or title company accepts the file and earnest money instructions.
How long does escrow take in Snohomish County?
- Many closings take 30 to 45 days, depending on appraisal timing, loan underwriting, and how quickly title and contingencies are cleared.
Who holds earnest money and when can I get it back?
- Escrow holds your deposit in a trust account. Refunds depend on your contract and deadlines. If you cancel under a valid contingency, you are generally entitled to a refund.
Who pays Real Estate Excise Tax (REET) in Washington?
- REET is usually paid by the seller at closing, though the parties can negotiate. Rates and any local surcharges are set by the state.
Should I buy an owner’s title insurance policy in Mukilteo?
- It is recommended because it protects your ownership against covered title defects with a one‑time premium at closing. Who pays can be negotiated.
What happens if the title search finds a lien or defect?
- Escrow works to clear the issue, such as paying off liens or obtaining corrective documents. If it cannot be resolved in time, closing may be delayed or the contract may be cancelled per its terms.
Who sets the closing date and the possession date in Washington?
- Your purchase agreement sets both. Possession can be the same day as recording or a different date if you negotiate terms like a seller rent‑back.
