Buying a home in Weston and keep hearing the word “escrow”? You are not alone. Escrow touches every part of a Florida closing, yet it often feels like a black box. In this guide, you will learn what escrow is, who holds it in Broward County, how the timeline works from deposit to recording, and the steps you can take to protect your money. Let’s dive in.
Escrow in Florida: The basics
Escrow is a neutral holding arrangement. A third party holds funds and key documents until the contract’s conditions are met and both sides authorize closing. This protects you and the seller so money and ownership only change hands when the agreement’s terms are satisfied.
In Florida residential sales, the purchase agreement usually names the escrow agent and where your earnest money goes. The escrow holder follows the contract and only disburses funds when requirements are complete. Lenders do not typically hold earnest money, although your lender may set up a separate escrow account after closing for taxes and insurance.
Who holds escrow in Weston
- Title or closing companies are the most common escrow agents in Florida. They coordinate the title search, prepare closing statements, hold buyer funds in an escrow or trust account, handle recording, and disburse funds after closing.
- Real estate brokers can accept earnest money deposits. When they do, they must handle escrow funds under Florida rules and deposit them into an escrow or trust account or with a neutral escrow holder based on the contract.
- Real estate attorneys may serve as closing or escrow agents when selected.
For your purchase, follow the purchase agreement. It specifies the escrow agent, where to deliver funds, and the conditions for disbursement.
Your escrow timeline
Escrow length depends on your contract, financing, and any title or inspection issues. In many Florida transactions, the overall timeline is about 30 to 45 days for conventional financing. Cash purchases often close sooner.
Offer accepted: deliver deposit
- What happens: You send your earnest money to the named escrow agent. Payment methods can include wire, cashier’s check, or personal check, depending on the agent’s rules.
- What to expect: You receive a written receipt that shows the amount, date, and where funds are held.
- Your move: Save the receipt, confirm the escrow agent’s contact information, and verify where your funds are being held.
Inspection and title review
- Inspections typically occur soon after acceptance. Repair requests and contingency timelines follow your contract.
- The title or escrow company orders a title search and issues a title commitment with any exceptions or items to address.
- Your move: Review inspection results and read the title commitment. Ask questions about easements, liens, or association matters that affect your use of the property.
Appraisal and underwriting
- If you are financing, the lender orders an appraisal and completes underwriting.
- This stage commonly takes 2 to 3 weeks, though timelines vary.
- Your move: Track lender conditions, provide documents quickly, and stay in touch with your agent about closing readiness.
Closing and funding
- The escrow agent prepares your closing statement and coordinates final signatures.
- Your lender wires funds to escrow, you bring your required cash to close, and the escrow agent disburses funds once documents are signed and recorded.
- Broward County recordings are often processed by e-recording. Recording typically happens the same day or the next business day depending on timing and county workload.
After closing
- The escrow agent disburses proceeds, pays off liens, and finalizes your file.
- You receive your recorded deed (or confirmation of recording) and your title insurance policy or a commitment that the policy will be issued shortly.
How escrow protects you
- Funds are held by a neutral party and released only when contract conditions are satisfied.
- If you cancel under a valid contingency in your contract, your earnest money can be returned according to the agreement.
- Title insurance protects your ownership against covered title defects.
Receipts, funds, and disputes
- Always get a written escrow receipt after delivering your deposit. Keep it with your records.
- Use the payment methods your escrow or title company accepts. Many closings require “good funds,” such as a wire or cashier’s check, for final payment.
- If there is a dispute about earnest money or contract performance, escrow agents typically hold funds until both parties agree or a court issues an order. Many contracts outline mediation, arbitration, or interpleader options. Contact your agent or attorney promptly if a dispute arises.
Local tips for Weston buyers
- Review HOA items early. Many Broward properties involve homeowners associations. Ask about estoppel letters, dues, transfer requirements, and restrictive covenants listed in the title commitment.
- Check permitting and inspections. For Weston and nearby waterfront areas, consider inspections for roof, pest, HVAC, and, where relevant, seawall or flood risks. Review permitting history and code compliance.
- Understand recording timing. Broward County often uses e-recording, but actual time to record can vary by day and workload.
- Confirm acceptable funds. Ask your escrow or title company which payment types they accept and when wired funds must arrive.
- Guard against wire fraud. Criminals target real estate closings with fake wiring instructions.
- Verify wiring details by calling the escrow or title company at a phone number you find on their official website or an independently verified source.
- Treat last-minute changes as a red flag and confirm before sending any funds.
- Save your wire confirmations and email records.
Your Weston escrow checklist
Right after acceptance
- Confirm the named escrow agent and delivery instructions in your contract.
- Send earnest money using the approved method and get a written receipt.
- Save the escrow agent’s verified phone number and business address.
During escrow
- Ask when the title search and commitment will be delivered and plan time to review.
- Track inspections, appraisal, and lender underwriting conditions.
- Confirm acceptable payment methods and the procedure to verify wiring instructions by phone.
Before closing
- Request your final closing statement and review prorations, payoffs, and fees.
- Confirm signing time and location, and the exact amount to wire or bring.
- Verify all contact and wiring details using independently sourced phone numbers.
After closing
- Obtain your recorded deed, final closing statement, and title insurance policy.
- If your lender set up tax and insurance escrows, review them for accuracy.
Work with a trusted guide
Escrow is designed to protect you, but it only works smoothly when you have a clear plan, verified instructions, and proactive oversight. If you want a calm, well-communicated path to the closing table in Weston or anywhere in Broward County, connect with a local expert who manages details and anticipates issues before they escalate. Reach out to Amie Balchunas to map your next steps and schedule a free consultation.
FAQs
What does escrow mean when buying a house in Florida?
- Escrow is a neutral third party holding your funds and key documents until the contract’s conditions are met, then disbursing money and recording documents at closing.
How long does escrow usually take in Weston?
- Many financed Florida purchases close in about 30 to 45 days, while cash deals can move faster, depending on inspections, title, appraisal, and lender timelines.
Who holds the earnest money in a Florida transaction?
- The purchase agreement names the escrow agent, which is commonly a title or closing company, but it can also be a real estate broker or an attorney.
What happens if there is a dispute over my earnest money?
- Escrow agents typically hold funds until both parties agree or a court order is issued, following the dispute procedures in your contract such as mediation, arbitration, or interpleader.
How can I avoid wire fraud before closing?
- Call the escrow or title company using a phone number you verify independently, confirm wiring details verbally, and treat any last-minute changes as suspicious before sending funds.
