Escrow and closing: the last two weeks, from walkthrough to keys

Escrow's role in a Washington closing

Washington is an escrow state. Instead of an attorney-run closing table, a licensed escrow company or a title company's escrow division acts as a neutral third party for both buyer and seller. It holds your earnest money if the agreement directed it there, collects the lender's documents and funds, prepares the settlement statement, obtains the seller's deed, pays off the seller's mortgage and other liens, and records the transfer with the county. It follows written instructions from both parties and the lender, and it does not take sides.

The closing agent is named in Form 21 Specific Term 10. On the Eastside, title and escrow are often the same company, with the title officer clearing the title commitment and the escrow officer handling the closing file. You will hear from the escrow officer or their assistant early in the transaction and again in the final two weeks.

Under Form 21 General Term h, unless the utility service box was waived in Specific Term 12, escrow also collects final utility charges from the seller's proceeds using the providers listed on Form 22K, so those bills do not become liens against you after closing.

The final walkthrough

Form 21 General Term f gives you the right to walk through the property within five days of Closing to verify that the seller has maintained the home in its present condition, normal wear and tear excepted, and that systems and appliances still work. The same paragraph requires the seller to repair or replace anything that becomes inoperative before Closing with something of at least equal quality.

Schedule the walkthrough with your agent after the seller has moved out, or as close to that as possible. Run the faucets and flush the toilets, test the range, dishwasher and disposal, open the garage door, check the furnace and any included items from Specific Term 5, and confirm agreed repairs from Form 35R were completed. Bring the inspection report and the repair agreement.

This is a verification, not a second inspection. If something is wrong, tell your agent from the property. The remedy depends on what it is and how much time remains, and your agent will take it to the listing side immediately.

Your signing appointment

Escrow schedules your signing a few days before the Closing Date, once the lender has delivered loan documents and the Closing Disclosure waiting period has run. You sign at the escrow office in front of a notary, or with a mobile notary escrow sends to you. Plan on 45 to 90 minutes. Every buyer named on the agreement must sign; if someone will be out of town, tell escrow early so they can arrange a remote or mail-away signing.

Bring a current government-issued photo ID for each signer; the notary cannot proceed without it. If your name differs between your ID and the loan documents, raise it before the appointment.

You will sign the promissory note, the deed of trust that secures it, the Closing Disclosure, the escrow settlement statement, and a stack of affidavits and lender forms. The escrow officer explains each document as you go. Read the settlement statement carefully: it shows your purchase price, credits, loan amount, prorated taxes and the final cash to close.

Cash to close, and the one rule about wires

Escrow will tell you your exact cash to close figure once the lender's numbers are final, usually a day or two before signing. Escrow companies in Washington require collected funds for closing, which means a wire transfer from your bank; many will not accept a personal check for a sum this size, and a cashier's check adds a hold. Ask escrow how and when they want the funds, and note that banks have daily wire cutoff times.

Wire fraud in real estate targets buyers in closing week. The scheme is an email or text that looks like it came from escrow or your agent, with wiring instructions that route your money to a criminal's account. Form 21 General Term a puts the rule in the contract itself: before wiring funds, you must confirm the wire instructions by an independently verified phone number. That means calling the escrow office at the number printed on your purchase agreement or your escrow officer's card, not a number in the email.

Form P6, the NWMLS Wire Fraud Alert, is the one-page notice your agent reviews with you and asks you to sign. Wire instructions never change by email. If you receive a message saying they have, call.

Funding, recording, and when you get the keys

After you sign, the lender reviews the package and wires the loan proceeds to escrow. Escrow confirms both wires are in, balances the file, and releases the deed and deed of trust for recording with the King County Recorder's Office. Once recording numbers come back, escrow disburses the seller's proceeds.

Form 21 General Term f defines Closing as the date all documents are recorded and the sale proceeds are available to the seller. That is when you own the house. The seller delivers keys, remotes and codes on the Closing Date or the Possession Date, whichever comes first, and you are entitled to possession at 9:00 p.m. on the Possession Date unless a different time was written in. Many sellers release keys earlier on recording day; the form sets the outer limit.

Recording can slip. If the Closing Date falls on a weekend, a legal holiday or a day the recording office is closed, General Term f moves it to the next day that is none of those. Your agent will tell you the moment recording is confirmed. Common causes of delay:

• Lender funds after the county's recording cutoff
• Wire misses your bank's cutoff or is held for review
• A document or Closing Disclosure error requires a corrected signing
• A seller-side item is outstanding: payoff figure, signature or lien