Buying or selling in West Port Madison and not sure what “title” and “escrow” actually do? You are not alone. These terms come up early and often, and getting them straight can save you stress, time, and money. In this simple guide, you will learn who handles what, how a typical Bainbridge closing works, which local fees to expect, and practical tips to keep your Kitsap County closing on track. Let’s dive in.
Title vs. escrow: clear roles
What title does in Washington
Title focuses on ownership and recorded history. The title department researches public records to confirm who owns the property and whether any liens, easements, covenants, or judgments affect the sale. You will receive a preliminary title report that lists any exceptions and the steps required to clear them before closing. After recording, title issues insurance policies that protect against covered defects that existed before closing but were not found in the search.
Common title outputs you will see:
- Preliminary title report or commitment
- Owner’s title insurance policy for the buyer (optional but commonly recommended)
- Lender’s title insurance policy for the lender (usually required if you finance)
What escrow does in Washington
Escrow is the neutral third party that moves your closing forward. Escrow holds earnest money in trust, follows written instructions from both sides and the lender, coordinates signings, receives and verifies funds, and disburses money only when all conditions are met. Escrow also calculates prorations for taxes, HOA dues, and utilities, and prepares your final closing statements.
Escrow’s core functions include:
- Holding and disbursing funds when conditions are satisfied
- Coordinating documents, notarization, funding, and recording
- Preparing settlement statements and prorations
Where title and escrow overlap
In Washington, many companies offer both title and escrow services under one roof. Even so, the roles remain distinct. Title handles research and insurance. Escrow handles the neutral processing of funds and documents. Operations are kept separate to preserve compliance and neutrality.
Who chooses the title and escrow company
In our region, it is common for the listing seller or listing agent to propose a provider, but either party can request a different company. The choice is negotiable and should be confirmed in your purchase and sale agreement.
The Bainbridge closing flow, step by step
Every transaction is unique, but most Kitsap County closings follow a similar sequence from offer to recorded deed.
- Offer accepted and earnest money delivered to escrow
- Escrow opens the file and deposits earnest money into a trust account.
- Title order and preliminary report
- Title searches public records and issues a preliminary report listing exceptions and required payoffs.
- Contingencies and inspections
- You complete inspections, review disclosures, and advance loan approval. Findings may lead to repairs or credits.
- Loan underwriting, appraisal, and clear to close
- Your lender orders the appraisal and completes underwriting while you satisfy any conditions.
- Payoffs and lien clearance
- Title and escrow request payoff statements for existing mortgages, judgments, or liens. The seller arranges to clear items at closing.
- Final title review and closing instructions
- Title confirms remaining requirements. Escrow prepares the Closing Disclosure and Settlement Statement, and your signing is scheduled.
- Signing and funding
- Parties sign documents. The buyer wires funds or the lender wires loan proceeds to escrow. Escrow verifies funds for accuracy and readiness.
- Recording and disbursement
- Escrow records the deed, mortgage if any, and other documents with the Kitsap County Auditor. After confirmation, escrow disburses funds.
- Title insurance issuance
- The lender’s policy is typically issued upon funding. The owner’s policy issues after recording and final checks.
Typical timelines in Kitsap County
- Overall closing window: about 30 to 45 days for financed purchases. Cash can be quicker.
- Inspection period: commonly 7 to 14 days, depending on your contract.
- Underwriting and appraisal: often 2 to 4 weeks, based on lender workload.
- Recording: same day to a few business days after funding, depending on county volume and document readiness.
These are typical ranges. Your timing depends on your contract, lender speed, title and escrow workloads, and how quickly everyone delivers required items.
Costs, taxes, and fees to expect
Your closing package will include standard items for Washington and Kitsap County. Amounts change, so confirm specifics with your closing team.
- Real Estate Excise Tax (REET): In Washington, sellers typically pay REET at closing. State and sometimes local rates apply. Your closing agent will file and collect it.
- Recording fees: The Kitsap County Auditor charges fees to record deeds, mortgages, and related documents. Your settlement statement will show these line items.
- Property tax prorations: Escrow will prorate taxes through the closing date based on the county’s billing cycle.
- Assessments or levies: Any recorded local improvement district assessments, utility charges, or other levies must be resolved or addressed in escrow.
West Port Madison tips to avoid delays
West Port Madison offers a quiet waterfront lifestyle, but island logistics and shoreline features can add steps to a closing. A little preparation keeps things smooth.
- Review the preliminary title report quickly. Confirm ownership vesting, legal description, easements, covenants, and any special assessments.
- Ask about permits early. Older island homes and shoreline improvements can have past permit history that is worth understanding. If the seller has records, bring them forward early.
- Plan signings with travel in mind. Ferry schedules, island traffic, and limited in-person office hours can tighten windows. Ask about mail-away or mobile notary options if needed.
- Consider remote notarization. Washington permits remote online notarization under state rules. Confirm your title or escrow firm’s capabilities and whether your lender accepts RONA.
- Verify all wiring instructions by phone. Use a known office number from your contract or the company’s official website. Do not rely on email alone.
- Bring valid ID to signing. Make sure the names on your ID match your loan and title documents to prevent recording delays.
Common title issues in Bainbridge and Kitsap
A careful read of the preliminary title report can head off last-minute surprises.
- Easements and rights of way. Private road and utility easements are common in island communities.
- HOA or community covenants. Some neighborhoods have recorded covenants that guide use and maintenance.
- Unpaid assessments or special levies. These will appear in the title search and must be handled at closing.
- Judgments or liens. Mortgages, HELOCs, IRS liens, or other judgments must be paid off or cleared before recording.
Keep your closing on track
Use this quick checklist to stay ahead of the process.
For buyers
- Select your homeowner’s insurance early and provide the policy binder before funding.
- Respond quickly to lender conditions. Upload documents within 24 hours when possible.
- Review the Closing Disclosure as soon as it arrives and ask questions right away.
- Confirm final walk-through timing and utility transfers.
For sellers
- Order payoff statements early for mortgages, HELOCs, and HOA dues. Payoff quotes can expire, so keep them current near closing.
- Gather permit and improvement documents. If you have records for remodels, septic, or shoreline work, share them with escrow and the buyer.
- Review the preliminary title report carefully. Resolve known items promptly.
- Plan your move-out to align with recording day and possession terms in your contract.
How we support your Bainbridge closing
You deserve a closing that feels organized, transparent, and calm. As your Island Life Concierge, our team brings a hospitality approach to every step. We help you interpret the preliminary title report, prepare and stage your home with Compass Concierge when selling, and coordinate inspections, insurance, and signings with your lender and escrow team. Our Bainbridge focus and established local network help you anticipate island-specific details such as shoreline considerations, septic steps, and travel timing.
Whether you are buying a second home on the water or selling a long-held estate, you will have a steady guide to keep your transaction moving and your interests protected. When you are ready, reach out to the Amy McFarland Team to plan your next steps.
FAQs
Who pays for title insurance in a Washington closing?
- Payment is negotiable and varies by local custom. The lender typically requires a lender’s policy if you finance. An owner’s policy is optional but commonly recommended. Confirm the allocation in your purchase contract.
Who chooses the title and escrow company on Bainbridge Island?
- Either party can request a specific provider, though the listing side often proposes one. Make sure the selection is written into your contract or agreed to in writing.
How long after signing does recording happen in Kitsap County?
- If funds and documents are in order, recording is often the same day or within a few business days. County workload and document readiness affect timing.
What does title insurance actually cover for buyers?
- It protects against covered defects that existed before closing and were not found in the title search. It does not cover issues created after closing.
What if a title issue appears late in escrow?
- Escrow will list requirements in the title commitment. Unresolved liens or defects can delay closing until cleared or until parties agree to a holdback or other remedy.
