Escrow & Title

What is 'split closing' or 'split escrow' and why might it occur in Hawaii transactions?

AA. A closing handled by two different agents representing buyer and seller
BB. A closing where the title/escrow functions are split between two companies (one handling buyer side in a different state, one handling Hawaii-side documentation and recording)✓ Correct
CC. A closing where costs are split equally between buyer and seller
DD. A closing where the commission is split between two brokerages across state lines

Explanation

A split closing (split escrow) may occur when parties are in different locations and local practices differ. For example, a mainland buyer using a mainland title company for their loan documents while the Hawaii-side escrow handles recording and disbursement. The two escrow companies coordinate to complete the transaction. Hawaii transactions with mainland sellers or buyers may use this approach.

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