Feeling unsure about who holds your earnest money, who checks for liens, and who actually closes your home sale in Puyallup? You are not alone. The terms escrow and title often get mixed up, especially in a fast-moving Pierce County market. In this guide, you will learn what each company does in Washington, who typically pays for what, and how a standard closing comes together step by step. Let’s dive in.

Escrow vs. title: the big picture

Escrow companies in Washington act as neutral third parties. They hold funds and documents, follow written instructions from the buyer, seller, and lender, and coordinate the steps to close. They also disburse money at closing and arrange recording with the county.

Title companies research the property’s legal history and issue title insurance policies. They examine public records for deeds, liens, judgments, and easements, then insure against certain covered defects that were not found in the search. Think of escrow as managing the closing process and money, and title as verifying ownership and providing insurance.

In some transactions, one firm may provide both escrow and title services. Even then, the services remain legally distinct and are regulated separately in Washington.

How Washington regulates both

Escrow agents and companies are licensed and regulated by the Washington State Department of Financial Institutions, which offers consumer protections and licensing resources. You can learn more from the Washington State Department of Financial Institutions.

Title insurance is regulated by the Washington State Office of the Insurance Commissioner. Title insurers file their rates and follow underwriting rules. For consumer guidance, visit the Washington State Office of the Insurance Commissioner.

Federal rules also apply. The Consumer Financial Protection Bureau oversees disclosures like the Closing Disclosure and affiliated business arrangement requirements under RESPA. Learn more from the Consumer Financial Protection Bureau.

Who chooses and who pays

Selection of escrow and title providers is negotiable in Washington. Local custom can influence the decision, especially if one party is paying for a specific policy, but the purchase agreement controls.

In many Puget Sound transactions, sellers often pay for the owner’s title insurance policy. Buyers who use a mortgage usually pay for the lender’s policy. Escrow fees are also negotiable and often split by agreement. Always confirm who pays for each line item in your contract.

Separate from title and escrow, Washington’s Real Estate Excise Tax is typically a seller cost. For rules and filing details, check the Washington State Department of Revenue.

What escrow does in your Puyallup closing

Escrow centers the logistics so everyone closes on time and on terms. Common responsibilities include:

• Holding the earnest money and final funds.
• Coordinating with title, the lender, agents, and the county.
• Preparing settlement statements, prorations for taxes and HOA dues, and disbursement figures.
• Obtaining payoff statements for the seller’s loans and other liens.
• Scheduling signing, verifying IDs, and arranging recording with Pierce County.
• Disbursing proceeds to the seller, paying off lenders, and paying commissions after recording.

Escrow is licensed and regulated in Washington, which adds consumer protections around how funds are handled. Learn more from the Washington State Department of Financial Institutions.

What title companies do and why it matters

Title companies examine Pierce County public records to confirm ownership and identify recorded encumbrances. You will see their findings in a title commitment, which lists exceptions such as easements, covenants, or liens.

They also issue title insurance. The owner’s policy protects the buyer’s ownership interest, and the lender’s policy protects the mortgage lender. If the title search misses a covered defect, the policy helps protect you according to its terms. Title insurance is regulated in Washington by the Office of the Insurance Commissioner.

If problems appear, title and escrow often work together to clear issues by obtaining releases or arranging payoffs before closing.

Your 30–45 day timeline

Actual timing depends on your contract, loan type, and provider turn times. Here is how a common sequence looks in Puyallup:

Day 0: Offer accepted

• Escrow opens the file, issues an escrow number, and requests the earnest money.
• Title is ordered. The title company begins the record search and prepares the title commitment.

Days 1–7: Early actions

• Title completes the search and issues the commitment with any exceptions to address.
• Your lender orders the appraisal and the lender’s title policy.
• Inspections happen now. If repairs are agreed, escrow may prepare holdback instructions.

Days 7–25: Clearing and preparing

• Title and escrow work on clearing liens or judgments listed in the commitment.
• Escrow requests HOA resale documents if needed and calculates tax and HOA prorations.
• Escrow prepares settlement statements and gathers payoff demands and final instructions.
• The lender must provide your Closing Disclosure at least 3 business days before consummation. See the Consumer Financial Protection Bureau for timing.

Final 3 days to close

• Escrow shares wire or cashier’s check instructions for your final funds. Always verify wiring instructions by phone using a known number to avoid fraud. The Consumer Financial Protection Bureau offers guidance on wire safety.
• You sign closing documents with escrow or a signing notary.
• After the lender funds and escrow verifies all money, escrow directs recording with the Pierce County Auditor and disburses funds. Title policies are then issued.

After closing

• You receive recording confirmations and copies of key documents.
• Title delivers the final owner’s and lender’s policies according to their delivery timeline.

Pierce County recording and local notes

Recording of deeds and deeds of trust happens with the Pierce County Auditor. Many documents record the same day, though posting to the public index can take additional time. For current fees, formatting, and turnaround, visit the Pierce County Auditor.

If a property is part of an HOA or a condominium, expect additional resale documents to be ordered. Turn times can vary and may affect clearance.

Affiliated providers and your choice

Some brokerages, lenders, or builders have affiliated title or escrow companies. Under federal rules, you must receive an Affiliated Business Arrangement disclosure that explains the relationship and tells you that you are not required to use the referred provider. The Consumer Financial Protection Bureau outlines these protections.

You can choose your own providers, negotiate who pays which fees, and compare service levels and turn times.

Smart checklists for buyers and sellers

Buyer checklist

• Confirm who pays for owner’s and lender’s title policies and escrow fees in your contract.
• Review the title commitment early and ask about any exceptions.
• Watch for your Closing Disclosure at least 3 business days before consummation. Read it carefully and ask questions.
• Verify wire instructions by phone using a known number before sending funds.
• Bring a government photo ID to signing and plan a final walk-through 24–48 hours before closing.

Seller checklist

• Gather payoff info for all loans and any liens. Share HOA details if applicable.
• Confirm Real Estate Excise Tax responsibility and filing requirements with the Washington State Department of Revenue.
• Respond quickly to escrow’s requests for tax ID and secure disbursement instructions. Always verify wire details.
• Review title exceptions, and work with escrow and title to clear any issues early.

Documents you will see

• Deed and Deed of Trust
• Closing Disclosure and settlement statements
• Title commitment and title insurance policy
• Escrow instructions and payoff statements
• REET affidavit and HOA resale documents if applicable

Red flags to watch for

• Unresolved liens or judgments on the title commitment close to your closing date.
• Numbers that do not match between the lender’s Closing Disclosure and escrow’s settlement statement.
• Email-only wire instructions or last-minute changes without phone verification.
• An affiliated business referral with no written disclosure.

The bottom line

Escrow manages the money and the closing process. Title researches ownership and insures against covered title defects. In Puyallup, who chooses and who pays is negotiable, and customs can vary by deal. When you understand the roles, the rules, and the timeline, you close with confidence.

If you want a smooth Pierce County closing with clear communication at every step, connect with Kimber Lee for local guidance and a plan tailored to your move.

FAQs

Who chooses the escrow and title company in Puyallup?

• It is negotiable, and the purchase agreement controls; local custom may influence the choice, especially if one party is paying a specific policy.

Who typically pays for title insurance in Washington?

• In many transactions the seller pays for the owner’s policy and the buyer pays for the lender’s policy, but this is negotiable and should be confirmed in your contract.

Can one company provide both escrow and title services?

• Yes, one firm can provide both services, and if there is an affiliation you should receive a written disclosure that you are not required to use the provider.

How long does Pierce County take to record my deed?

• Many documents are recorded the same day or within a few business days, but you should check the Pierce County Auditor for current processing times.

What happens if a lien is found during the title search?

• The title company typically works to obtain releases or arrange payoffs before closing; if it cannot be cleared, the parties decide on a resolution or next steps.

What is REET and who pays it in Washington?

• Real Estate Excise Tax is a state tax on property sales, and the seller is typically responsible; find rules and filing details with the Washington State Department of Revenue.