Escrow & Title

What is the difference between an escrow company and a title company in Washington?

AThere is no difference — they perform identical functions
BTitle companies search title and issue title insurance; escrow companies handle the closing process; some firms do both✓ Correct
CEscrow companies are licensed by the DOL; title companies are not regulated
DTitle companies are only for commercial transactions; escrow companies are for residential

Explanation

Title companies search title, issue title insurance commitments and policies, and may also provide escrow services. Escrow companies handle the closing process (receiving and disbursing funds, coordinating signing). In Washington, many title companies offer both services, but they are distinct functions.

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