State Practice, Closing, and Escrow (Washington)
This topic covers how Washington transactions close through escrow and how firms must handle trust funds.
Closing Through Escrow
Washington transactions are commonly closed through a neutral escrow or closing agent who holds the buyer's funds and the deed, follows the parties' written instructions, disburses funds, and records documents. Escrow protects both sides by ensuring conditions are met before title and money change hands. Deeds of trust are the usual security instrument.
Trust Accounts
When a firm receives earnest money or other client funds, they must be deposited into the firm's real estate trust account and handled under RCW 18.85 and the associated rules, never commingled with personal or operating funds. The designated broker is responsible for the trust account and its records, protecting client money.