Buying or selling in Thurston and wondering what really happens after your offer is accepted? Escrow is the quiet engine that moves your Springfield home sale from handshake to recorded deed. When you understand how it works, you can plan your move, avoid delays, and feel confident every step of the way. This guide breaks down the process in plain language, with local context for Lane County.
Let’s dive in.
Escrow basics in Oregon
What escrow means
Escrow is a neutral service that holds money, documents, and written instructions until all contract conditions are met. An escrow officer at a title or escrow company makes sure funds and documents change hands only when both sides have completed their to-do list. This protects you whether you are buying or selling.
Escrow vs. mortgage escrow
Do not confuse transactional escrow with a mortgage escrow account. The escrow we are talking about is a short-term closing process for a sale. A lender escrow account, sometimes called an impound account, is a long-term account your lender may use to collect property taxes and homeowner’s insurance after closing.
Typical escrow length
Timing depends on your contract and financing. Cash deals may close in 7 to 30 days. If you are getting a loan, 30 to 45 days is common. Condos and sales involving probate or complex title issues may take longer.
Who is involved and what they do
- Buyer and buyer’s agent: complete inspections, loan steps, and funds to close.
- Seller and seller’s agent: provide disclosures, payoffs, and sign the deed.
- Escrow officer and title company: handle the escrow, title search, closing funds, recording, and title insurance.
- Lender: orders appraisal and provides loan documents and funding.
- Lane County offices: the Clerk/Recorder records the deed and any deed of trust; the Assessor tracks tax assessments.
- HOA, if applicable: provides resale documents and account statements.
Step-by-step Springfield escrow timeline
1) Offer accepted and escrow opened
- You sign the Purchase and Sale Agreement, often using standard Oregon REALTORS forms.
- The buyer deposits earnest money into escrow per the contract. Escrow issues a receipt.
2) Opening tasks, days 1–7
- Escrow opens a file, shares contact info, and requests the seller’s mortgage payoff and any lien payoffs.
- A preliminary title search begins to identify any liens, easements, or ownership issues.
3) Title search and preliminary report
- The title examiner reviews Lane County public records for liens, easements, judgments, and encumbrances.
- A preliminary title report lists items that must be addressed before closing or shown as exceptions to insurance.
4) Contingency period
- Buyer inspections happen. This can include a general home inspection, pest inspection, and septic or well inspections for rural properties common in parts of Lane County.
- If there is a loan, the lender orders an appraisal and completes underwriting. Loan approval is a common contingency.
- For condos or planned communities, the buyer reviews HOA documents.
5) Clearing title issues
- Unreleased liens, judgments, or missing signatures on prior deeds must be cured or insured over before closing.
6) Final loan documents and closing figures
- The lender delivers the Closing Disclosure to the buyer at least three business days before consummation. Use that window to review every fee.
- Escrow prepares a settlement statement for each party with prorations, payoffs, fees, and the seller’s net.
7) Final walkthrough and signing
- The buyer does a final walkthrough, often 24 to 48 hours before closing, to confirm condition and repairs.
- You sign closing documents. Sellers sign the deed and payoff authorizations. Buyers sign loan documents, if applicable, and closing paperwork.
8) Funding, recording, and disbursement
- The lender wires loan funds to escrow.
- Escrow records the deed and any deed of trust with the Lane County Recorder.
- After recording, escrow disburses funds: pays off liens, pays commissions, and sends net proceeds to the seller. Title insurance policies are issued.
9) Post-closing follow-ups
- Escrow provides final settlement statements.
- The recorded deed appears in county records, and keys are transferred per the contract instructions.
Documents you will see
Key documents escrow handles
- Purchase and Sale Agreement
- Earnest money receipt
- Preliminary title report or commitment
- Seller’s deed for recording
- Payoff statements for any mortgages or liens
- Loan documents for financed buyers
- Settlement statements for buyer and seller
- Oregon Seller’s Real Property Disclosure
- HOA documents, if needed
Where documents are recorded
Deeds, deeds of trust, reconveyances, and related items are recorded with the Lane County Clerk/Recorder. Recording places ownership and lender interests into the public record and establishes priority. Escrow confirms recording and shares recording numbers with both parties.
Closing costs and prorations in Lane County
Who pays what
Escrow and title fees vary by company and price. Costs may include the escrow fee, title search, title insurance, document preparation, recording, and courier fees. Who pays each fee is negotiable in your contract and can vary by local custom. Confirm expectations for Thurston and Springfield with your agent and escrow officer before you sign.
What gets prorated
- Property taxes: usually prorated so the seller pays through the day of closing and the buyer pays after.
- HOA dues and utilities: prorated per the contract.
- Prepaid items: escrow calculates and allocates per closing date.
Lender-related fees and reserves
If you have a loan, your lender may collect prepaid homeowner’s insurance, a portion of property taxes, and an initial deposit for your mortgage escrow account. These appear on the buyer’s settlement statement.
Earnest money basics
Earnest money amounts vary by market and contract. A common range is 1 to 3 percent of the purchase price, but local expectations can differ. Whether earnest money is refundable depends on your contingencies and timelines.
Common delays and how to avoid them
- Title issues: unknown liens or judgments can stall closing. Provide payoff info early and respond quickly to requests.
- HOA documents: slow delivery or errors can cause extensions. Request resale packets as soon as you go under contract.
- Appraisal shortfalls: if value comes in low, you may renegotiate or bring additional funds.
- Lender underwriting: extra documentation requests can pop up. Keep your financial paperwork organized and respond fast.
- Inspection negotiations: keep timelines in mind and document agreements in writing.
- Payoff figures: make sure the seller’s mortgage payoff statements are current and accurate.
Protect your funds from wire fraud
Wire fraud is a growing risk. Follow these steps every time you move money:
- Call your escrow officer at a known, independently verified number to confirm wiring instructions.
- Never trust last-minute changes sent by email. Verify by phone before acting.
- Use secure email practices and avoid public Wi-Fi when sending sensitive information.
Tips for Thurston buyers and sellers
- Share IDs and payoff details with escrow early to avoid last-minute scrambles.
- Schedule the final walkthrough within 24 to 48 hours of closing to confirm repairs.
- Review the Closing Disclosure and settlement statements line by line. Ask your escrow officer to explain anything unclear.
- For rural properties, allow time for septic, well, and any access easement documentation.
- For condos and planned communities, request HOA resale documents right away and track delivery.
What happens on closing day
- Buyers: Your lender wires funds, you confirm final figures, the deed records, and then you receive keys per the contract.
- Sellers: Your mortgage and liens are paid, fees are balanced, and you receive your net proceeds after recording.
After closing
Escrow provides your final documents and confirms recording. The deed will appear in Lane County records, and title insurance policies will be issued. Keep your settlement statement for tax filings. For tax questions, consult a qualified advisor.
When you are ready to buy or sell in Thurston or greater Springfield, you deserve clear guidance and hands-on help through escrow. If you want a local team that knows Lane County inside and out, reach out to Chuck Wetherald, PC for straightforward advice and next steps. Get your free home value report.
FAQs
What is escrow in a Springfield home sale?
- Escrow is a neutral process where a title or escrow company holds funds and documents and follows written instructions until all contract conditions are met, then closes and disburses.
How long does escrow take in Lane County?
- Cash sales often close in 7 to 30 days, while financed purchases commonly take 30 to 45 days, depending on inspections, appraisal, and lender timelines.
Who holds my earnest money in Oregon?
- The earnest money is typically deposited with the escrow or title company named in your contract, which issues a receipt and holds the funds per the agreement.
When do I get keys in Springfield?
- You usually receive keys after the deed records with the Lane County Recorder and escrow confirms recording and disbursement, per the contract instructions.
How are Lane County property taxes handled at closing?
- Property taxes are typically prorated so the seller pays through the closing date and the buyer is responsible after, with calculations handled by escrow.
What if the appraisal comes in low in Springfield?
- You may renegotiate price or terms, request repairs or credits, or bring additional funds, depending on your contract and lender requirements.
How do I avoid wire fraud during escrow?
- Always verify wiring instructions by calling your escrow officer at a known, trusted number; never rely on last-minute emailed changes without phone confirmation.
Who records the deed in Lane County?
- The escrow or title company submits the deed and any deed of trust for recording with the Lane County Clerk/Recorder and then confirms recording numbers with both parties.
