What Is an Escrow in Real Estate | Insight from Kitsap Real Estate Expert Bre Enbom

If you are buying or selling a home on the Kitsap Peninsula, you will hear the word escrow early in the process. Escrow is a neutral third party service that safely holds money and important documents during a real estate transaction until all agreed conditions are met.

According to Kitsap Peninsula real estate expert Bre Enbom, escrow plays a critical role in protecting both buyers and sellers. It ensures that no funds or property change hands until everyone has fulfilled their responsibilities under the contract.

When a buyer and seller reach an agreement, the buyer typically deposits earnest money into an escrow account. This shows good faith and is held securely while inspections, appraisals, and financing are completed. Escrow also coordinates with lenders, title companies, and real estate agents to track deadlines and required documents.

In Kitsap County, escrow companies are commonly part of the title company. They handle tasks such as preparing settlement statements, collecting loan funds, paying off existing liens, and recording the deed with the county once the transaction closes.

Escrow protects buyers by ensuring their money is not released until the seller meets all contract terms. It also protects sellers by confirming that the buyer has the funds and approvals needed to complete the purchase. This neutral process reduces risk and prevents disputes.

The escrow period typically lasts thirty to forty five days, depending on the type of loan and complexity of the transaction. During this time, buyers complete inspections and finalize financing, while sellers address any negotiated repairs or conditions.

Bre Enbom emphasizes that clear communication is key during escrow. Buyers and sellers should never wire funds without confirming instructions directly with their escrow officer. Fraud prevention is an important part of a secure closing.

Understanding escrow helps buyers and sellers feel confident throughout the transaction. With the guidance of a knowledgeable local Realtor, escrow becomes a smooth and well managed process that leads to a successful closing.