Who Chooses the Escrow Company in Washington?

In Washington real estate, the buyer and seller agree on the escrow company in the Purchase and Sale Agreement.

The lender does not choose escrow.

This is one of the most common misconceptions buyers have.

Escrow is a neutral third party that works for both buyer and seller to:

• Hold earnest money
• Prepare documents
• Coordinate signing
• Handle the money transfer
• Record the deed

Because escrow is neutral, it must be agreed upon by both sides in the contract.

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Why Buyers Think the Lender Chooses Escrow

Buyers spend most of their time talking to their lender, so they assume the lender controls escrow.

In reality:

• The lender works with escrow
• The agents select escrow in the offer
• The seller must agree to it

Escrow is written directly into the agreement at the time of offer.

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What This Means in Practice

The escrow company is chosen before the offer is accepted.

It is part of the terms of the contract just like:

• Price
• Closing date
• Possession date

Changing escrow after mutual acceptance requires agreement from both parties.

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How This Connects to Earnest Money

Once the offer is accepted, earnest money is delivered to the agreed escrow company, where it is safely held until closing.

This ties directly to:

• Earnest money protection
• Title coordination
• Closing document preparation

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Bottom Line

The escrow company is selected by agreement between buyer and seller in the contract — not by the lender.

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