Why Your Escrow & Title Company Matters More Than You Think
- kwellsgroup
- Jan 15
- 2 min read
In this transaction, the importance of who you work with became very evident.
The seller selected an out-of-town escrow company, and while that decision may seem minor on the surface, it resulted in multiple delays that could have been avoided with a more efficient, locally integrated escrow and title team.
To understand why this mattered, it helps to clarify what escrow actually means in a real estate transaction.
What Is Escrow?
The term escrow is used in two different ways.
First, escrow is a neutral third party responsible for:
Holding the buyer’s funds
Coordinating with the lender
Working with the title company to transfer ownership
In most transactions, title and escrow are handled by the same company for efficiency. These companies employ both escrow officers and title officers.
A title company’s role includes:
Providing preliminary title reports for buyer review
Clearing title issues
Recording the transfer of ownership with the county
Issuing title insurance
Escrow as a Process & Timeline
Escrow also refers to the time period and process of the transaction.
Escrow opens when the offer is mutually signed and delivered. During escrow:
The seller delivers disclosures
The buyer completes inspections and due diligence
The buyer secures loan funding
Escrow closes when:
Title is recorded with the county
Funds are released to the seller, agents, and vendors
Escrow and title fees are paid through closing costs, with the purchase contract clearly outlining who pays for what.
What Went Wrong in This Transaction
In this sale, several inefficiencies compounded into a four-day delay.
First, there was poor communication between the escrow officer and the buyer’s lender, which delayed “balancing the file”—determining the exact dollar amount the buyer and lender needed to wire.
Next, the buyer was asked to sign closing documents with an incorrect date, requiring a second notary appointment.
Because the escrow company was located in San Diego, documents couldn’t be dropped off same day and instead had to be shipped via UPS—adding more time.
To make matters worse, this escrow company did not have an in-house title department. The title work was handled by a separate title company in Sacramento, requiring physical documents to be shipped back and forth between cities.
All of this resulted in closing on Friday the 9th instead of Monday the 5th.
The Takeaway
In the grand scheme of things, a four-day delay isn’t catastrophic—but it created unnecessary stress for my clients, who are first-time homebuyers.
Behind-the-scenes professionals matter just as much as the ones you see. Choosing the right escrow and title team can mean the difference between a smooth closing and a stressful one.
Kyle Wells, Realtor®
KWells Group Real Estate
Brokered by eXp Realty of California, Inc.
915 Highland Pointe Dr STE 250
Roseville, CA 95678
📞 916-778-8659
DRE #02145088
Serving Roseville, Rocklin, Loomis & surrounding Placer County communities
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