Buying a home in Colfax should feel exciting, not confusing. If the word “escrow” has you wondering what happens after your offer is accepted, you are not alone. With a clear plan, you can move from offer to keys with confidence. In this guide, you will see how escrow works in Washington, what to expect in Whitman County, and the exact steps you will take to close. Let’s dive in.
What escrow means in Washington
Escrow is a neutral process that protects you and the seller while the deal comes together. A licensed escrow or title company holds funds and key documents, follows the purchase contract, and makes sure all conditions are met before money and ownership change hands. When everything is ready, escrow coordinates recording and distributes funds.
In Washington, escrow is often handled by a title company’s escrow department or an independent escrow company. Your escrow officer works with you, your lender, the seller, your real estate agent, and Whitman County offices to keep the file moving.
Who does what in Colfax escrow
Your role as the buyer
You deliver earnest money on time, complete loan requirements if you are financing, schedule inspections, and review the title report. Near the end, you sign closing documents and bring your closing funds.
The escrow and title team
Escrow opens your file, deposits funds in a trust account, and orders a title search. They prepare your closing statements, coordinate payoffs, collect signatures, and submit the deed for recording with the county. They also arrange title insurance.
Your lender’s part
If you have a loan, your lender orders the appraisal, processes underwriting, and issues final numbers. The lender sends a Closing Disclosure at least 3 business days before signing and wires loan funds to escrow once you are clear to close.
County offices involved
The Whitman County Auditor records the deed, which makes your ownership official in public record. The Treasurer handles property tax collection, and the Assessor updates ownership records. For rural homes with wells or septic systems, Whitman County Environmental Health may be part of inspections or approvals.
Colfax escrow timeline at a glance
Most financed purchases close in about 30 to 45 days. Cash deals can wrap up in 7 to 14 days. Your timing depends on inspections, underwriting, title issues, and the county’s recording schedule.
Right after offer acceptance
- Deliver earnest money per your contract and get a receipt from escrow.
- Share your contact information and identification with escrow.
- Escrow opens your file and deposits funds into a trust account.
Days 1 to 14
- Title search begins and you receive a preliminary title report to review.
- Schedule and complete inspections, such as home, pest, roof, septic, or well.
- If you are financing, your lender orders the appraisal and continues underwriting.
Weeks 2 to 4
- Work through any inspection items and resolve repair or credit requests.
- The seller clears any title issues, such as liens or missing releases.
- Your lender prepares your Closing Disclosure, which you must receive at least 3 business days before closing.
Final signing, funding, and recording
- Your lender issues a clear to close and confirms funds.
- You and the seller sign documents with a notary. Remote notarization may be possible when permitted.
- The lender wires funds to escrow. Escrow disburses money and submits the deed for recording with the Whitman County Auditor. Possession follows your contract terms, often after recording.
After closing
You receive your keys once recording is confirmed.
The title company issues your owner’s title policy shortly after closing.
Taxes, dues, and utilities are prorated on your settlement statement; post-closing adjustments are handled per the contract.
Local factors that can affect closing
Real Estate Excise Tax and property taxes
Washington charges a Real Estate Excise Tax on property transfers. The seller typically pays REET, though you can negotiate this in the contract. Property taxes in Whitman County are prorated at closing based on the closing date and local billing cycle. Escrow will confirm what is owed before you close.
Recording and possession timing
The Whitman County Auditor records deeds and related documents. Recording can occur the same day or take several business days depending on volume and timing. If your move-in depends on recording day, ask your escrow officer about expected turnaround times.
Water, sewer, wells, and septic systems
Inside Colfax city limits, many homes connect to municipal water and sewer. In unincorporated areas of Whitman County, you may see private wells and septic systems. If the property has a well, request well logs and recent water test results. For septic systems, a current inspection and compliance with local rules may be needed. Build these items into your inspection timeline so closing is not delayed.
Rural and agricultural considerations
The Palouse includes farm and former farm parcels. Title reports may show irrigation or drainage easements, utility or rail rights, and agricultural use covenants. Some properties may include mineral or water rights, or have access questions along private roads. Review these items early so you understand what runs with the land.
HOAs and special districts
If the home is in a subdivision with an HOA, escrow will request CC&Rs, bylaws, and resale documents. You should review transfer fees, dues, and rules early. Also ask whether the property is in a local improvement district or subject to special assessments, utility district fees, or fire district levies that could affect your costs.
Floodplain and permits
Your lender will often order a flood determination. If the home sits in a FEMA flood zone, you may need flood insurance. For homes with recent additions or major repairs, verify permits and final inspections were completed. Unpermitted work can cause title or lender issues.
Title and title insurance in Whitman County
What the title search covers
A title search reviews public records for liens, judgments, easements, covenants, and other encumbrances. You will receive a preliminary title report that lists exceptions and outlines any items that need to be cleared.
Common local exceptions
In and around Colfax, common exceptions include road or utility easements, irrigation ditch or drainage easements, and rights reserved for rail corridors or public utilities. You may also see unreleased mortgages, contractor liens from recent work, or unpaid taxes. Escrow will work with the seller to cure defects or list exceptions to your policy.
Owner’s vs. lender’s title insurance
If you finance, the lender will require a lender’s policy that protects the loan amount. An owner’s policy is optional but strongly recommended because it protects your ownership interest. Both policies are paid as a one-time premium, typically at closing.
Surveys and acreage questions
In rural areas, boundary or acreage questions sometimes surface. If a recent survey exists, escrow will review it. If not, your lender or you may request a survey to confirm boundaries before closing.
Costs and how you pay
Your closing costs depend on your loan type, contract terms, and local custom. Typical buyer costs can include:
- Down payment
- Loan origination charges, appraisal, credit report, and lender fees
- Escrow or closing fee
- Title insurance premiums
- Recording fees
- Prorated taxes, HOA dues, and assessments
- Courier or administrative fees
In Washington, the seller commonly pays REET, but you should verify this in your contract. For your closing funds, escrow will give specific instructions. Most escrow companies accept bank wires or cashier’s checks. Because wire fraud targets real estate closings, call your escrow company using a trusted phone number to verify wiring instructions before sending money. Never rely only on an email or a link.
Documents you will review and sign
- Purchase and sale agreement and any addenda
- Earnest money receipt
- Preliminary title report or commitment
- Seller disclosures
- Inspection reports
- Loan documents such as the note, deed of trust, and Closing Disclosure
- Settlement statement showing all credits and debits
- Deed that transfers ownership
- Affidavits and required certifications
- Title insurance policies and recorded documents after closing
Buyer checklist for Colfax escrow
- Confirm your escrow company and verify licensing status.
- Deliver earnest money on time and get a receipt.
- Schedule inspections early, including septic or well if applicable.
- Send all requested documents to your lender promptly and plan for the appraisal.
- Review the preliminary title report and ask about any exceptions.
- Request an estimated settlement statement so you know your final funds.
- Review your Closing Disclosure at least 3 business days before signing.
- Call escrow to confirm wiring instructions before sending money.
- Bring government-issued ID to signing and plan your funding method.
- After closing, confirm recording and receipt of your owner’s title policy.
Pro tips for out-of-area and first-time buyers
- Ask about remote signing options. In some cases, remote notarization can be arranged when permitted.
- If you are buying a rural property, order septic and well checks as soon as your offer is accepted so results arrive within your inspection period.
- If possession is time sensitive, coordinate your moving plans around expected recording times with the Whitman County Auditor.
- Keep your agent and escrow officer looped in on any loan changes so documents and numbers stay aligned.
When to ask for help
Questions about title language, HOA rules, or a unique well or septic system can slow a closing if you wait. Reach out early to your escrow officer, lender, and real estate agent to clarify next steps. The right team gives you clear timelines, accurate numbers, and a smooth handoff on closing day.
If you want a step-by-step plan tailored to your Colfax home search, connect with Krista Gross for local guidance from offer to recording. You will get clear checkpoints, trusted local referrals, and steady advocacy through closing.
FAQs
Who holds my earnest money in a Colfax purchase?
- Your purchase contract names the holder, often an escrow or title company or the listing broker’s trust account. Escrow deposits your funds in a trust account per the contract.
How long does escrow take in Whitman County?
- Financed purchases usually close in 30 to 45 days, while cash deals can close in 7 to 14 days. Underwriting, inspections, title cures, and recording timelines can affect timing.
Do buyers pay Washington’s Real Estate Excise Tax?
- Washington’s REET is customarily paid by the seller, but this can be negotiated in the contract. Escrow handles any required remittance at closing.
How are property taxes handled at closing?
- Escrow prorates property taxes and any special assessments based on your closing date and local billing cycles. They also verify whether taxes are current.
What if the title search finds a lien or easement?
- The seller and escrow typically work to clear liens before closing. If an issue remains, it may be listed as an exception to your title policy or paid off at closing.
Should I buy an owner’s title insurance policy?
- Yes. An owner’s policy is a one-time cost that protects your ownership from covered title defects and is strongly recommended in addition to the lender’s required policy.
Who pays escrow and closing fees in Colfax?
- It depends on your contract and local custom. Many fees are split, some are paid by the seller, and some by the buyer. Your Closing Disclosure and settlement statement show the final split.
How can I avoid wire fraud when sending closing funds?
- Call your escrow company using a verified phone number to confirm wiring instructions. Do not rely only on emailed instructions or links, and confirm funds were received.
