Escrow state
A state where closings run through an escrow or title company rather than an attorney. Most Western states are escrow states.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
In an escrow state a title or escrow company runs the closing instead of an attorney. It shapes who you talk to, what the closing costs look like, and whether anybody signs in the same room.
Part 2 of 4
A simple example
Selling in Arizona: the escrow company opens a file, holds the deposit, orders title, and closes the sale, usually with each side signing separately.
| The moment | In an escrow state |
|---|---|
| Opening | Escrow opens with the signed contract and the deposit |
| Closing week | Each side signs with the escrow officer, often on different days |
| Closing | Funding, recording and disbursement, done by the escrow company |
No attorney at the table by custom, and often no table at all.
Part 3 of 4
What people get wrong
That an escrow state has no lawyers. Either side can hire one; the custom is only about who runs the closing.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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