Updated November 2026. Rules were read in Florida Statutes §475.25, the Texas Real Estate Commission resale contract (TREC No. 20-19) and CFPB consumer pages. This is general information, not legal advice.
Escrow services in real estate are a neutral agent, usually a title company, escrow company or attorney, holding the buyer’s deposit, the loan funds and the signed deed until every term of the contract is met. Then the agent pays everyone out at close of escrow (COE). As of November 2026, the Texas resale contract gives buyers 3 days to deliver earnest money.
Jump to: 🏠 What escrow is · 🤝 Who holds the money · 💲 Earnest money · ⏱️ COE and timeline · 💲 Costs · ❓ FAQ
Key takeaways
- The escrow agent works for the deal, not for the buyer or the seller. It follows written instructions and nothing else.
- In Florida and Texas, a title company usually acts as escrow agent and closing agent in one. Florida law says a broker must place deposits in escrow immediately on receipt. If you’re the buyer, our guide on what happens in escrow after your offer is accepted shows the timeline.
- COE means close of escrow: funds are paid out and the deed is recorded. Your Closing Disclosure must arrive at least 3 business days before you close on a mortgage.
- Beycome Title charges a flat closing fee of $99 in Florida and $299 in Texas, with title insurance at the state-set rate.
What are escrow services in real estate?
Think of escrow as a locked box with a referee. The buyer puts money in. The seller puts in a signed deed. Nobody gets the other side’s item until the purchase contract says so.
The referee is the escrow agent. It might be a title company, an escrow company or a closing attorney, depending on your state. Its job is narrow. It holds funds and documents, tracks deadlines, collects payoffs and signatures, and pays everyone at closing. It doesn’t give advice, and it can’t take sides.
Here’s what escrow services usually cover in a home sale, and what they leave to others.
| Escrow services include | Not part of escrow |
|---|---|
| Holding earnest money and closing funds | Advice on price or terms |
| Collecting signed documents and loan payoffs | Settling disputes between buyer and seller |
| Tracking contract deadlines | Inspections and repairs |
| Preparing the settlement statement | Choosing the loan or the lender |
| Paying the seller, lender, taxes and fees at COE | Insuring the title (a title insurer does that, often the same company) |
The Texas resale contract says this plainly. The escrow agent “is not a party to this contract.” It also isn’t liable for how either side performs. That neutrality is the whole point. It lets two strangers trade hundreds of thousands of dollars without trusting each other.
Is “escrow as a service” the same thing?
Not quite. Online, “escrow as a service” often means a website that holds payment for goods, domain names or freelance work. Same idea, different world. In a home sale, escrow is tied to state real estate law, a title search and the county recorder. If you’re buying or selling a house, you want a licensed title or escrow agent, not a payment app.
Closing escrow vs your mortgage escrow account
The word “escrow” shows up twice in a home purchase, which confuses a lot of people. The first is the closing escrow above. It ends on closing day.
The second starts after closing. The CFPB explains that an escrow or impound account is set up by your mortgage lender to pay property taxes and insurance. A slice of each monthly payment goes into it, and the servicer pays the bills. Many lenders require one. Even if yours doesn’t, the CFPB suggests you consider asking for one, so you aren’t hit with a large tax bill all at once.
Who holds the money: escrow agent, title company or attorney?
It depends on where the home is. Some states lean on independent escrow companies. Others use attorneys. In Florida and Texas, it’s usually a title company that does both jobs: it holds the money and it runs the closing.
| Question | Florida | Texas |
|---|---|---|
| Who usually holds the deposit? | A title company, or the broker’s escrow account | The escrow agent named in the contract, usually a title company |
| What the rule says | A broker must place deposits in escrow “immediately” on receipt (§475.25(1)(k)) | Buyer delivers earnest money within 3 days after the effective date (TREC 20-19, ¶5) |
| Where the money can sit | A title company, bank, credit union or savings and loan in Florida | With the escrow agent named in the contract |
| Who runs the closing? | Usually the title company or an attorney | Usually the title company |
Who picks the title company? It’s negotiable and set in the contract. Our guide on who picks the title company covers the local customs. For what the title side actually does, read what a title company does.
What happens to earnest money in escrow?
Earnest money is the deposit a buyer puts down to show they’re serious. It goes to the escrow agent, not to the seller. Under the Texas contract, it’s due within 3 days after the effective date, along with any option fee.
If the sale closes, the money isn’t lost. The Texas contract says it’s applied first to the buyer’s cash down payment, then to the buyer’s expenses. Anything left goes back to the buyer.
If the sale falls apart, the escrow agent can’t decide who’s right. Here’s how the Texas contract handles it:
- Either side, or the escrow agent, sends a release for both parties to sign.
- If one side won’t sign, the other can make a written demand for the money.
- The escrow agent sends that demand to the other side.
- If no written objection arrives within 15 days, the agent may pay the side that made the demand.
Anyone who wrongly refuses to sign a release within 7 days can owe damages, the earnest money and attorney’s fees. Florida contracts have their own rules. Our guides to FSBO contracts in Florida and FSBO contracts in Texas walk through the deposit terms.
What does COE mean in real estate, and how long does escrow take?
COE stands for close of escrow. It’s the moment the deal is done: the lender funds, the escrow agent pays the seller and everyone else, and the deed goes to the county to be recorded. Many contracts use “closing” and “COE” to mean the same day.
How long it takes is set by the contract. Here’s the usual order of steps, from signed contract to COE.
- The contract is signed and becomes effective.
- The buyer delivers earnest money to escrow (within 3 days in Texas).
- The buyer does inspections during any option or inspection period.
- The title company searches the title and issues a title commitment.
- The lender orders an appraisal and finishes underwriting.
- The buyer gets the Closing Disclosure at least 3 business days before closing.
- Both sides sign, the lender funds and escrow pays out. That’s COE.
The CFPB says the Closing Disclosure is a five-page form with your final loan terms and costs. Use those 3 days to compare it with your Loan Estimate and ask questions. If something looks off, ask before you sign. A home inspection early in the process also helps you avoid surprises near COE.
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List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Protect your money from wire fraud
Closing funds are a big target. A CFPB article reported FBI data showing that attempts to divert closing funds rose 1,100% between 2015 and 2017, with nearly $1 billion in losses in 2017 alone. Scammers send fake emails that look like they’re from your agent or title company, with “new” wiring instructions.
Our rule: never trust wiring instructions sent by email alone. Call your title company at a number you already know, not one in the email, before you send money.
What does an escrow service cost?
Escrow and closing fees vary by company and state, and who pays them is part of the contract. Ask for an itemized estimate early. Our guides to how much closing costs run and who pays closing costs when selling break down the line items.
In Florida and Texas, Beycome Title’s escrow service works on a flat fee. The closing fee is $99 in Florida (prepaid on beycome.com) and $299 in Texas. Title insurance is charged at the state-set rate and underwritten by Old Republic National Title Insurance Company. You get an itemized estimate before you commit. To learn what that policy covers, read our guide to title insurance.
Selling? A flat fee MLS listing starts at $99 with $0 due to Beycome at closing, and you can close with Beycome Title in Florida, Texas, Michigan, Ohio, Illinois or Indiana (the last four). Buying? When you purchase a home through the Beycome buyer program, you pay no upfront fee. When the seller offers buyer-agent compensation, Beycome keeps 1% of the price (minimum $1,499) and credits the rest to you at closing. It works on homes listed by other agents; the credit can’t apply where no buyer-agent commission is offered, like most homes sold by owner, or on homes listed by Beycome sellers.
For another plain-language take on the basics, see Zillow’s guide to escrow.
Frequently asked questions
What is escrow in real estate?
Escrow is the period, and the arrangement, in which a neutral agent holds the buyer’s money and the seller’s deed until the contract terms are met. It works the same way in a by-owner sale; see how FSBO escrow services work. It starts when earnest money is deposited and ends at close of escrow.
What are escrow services?
A neutral third party that holds money and documents for a sale until every condition is met, then pays everyone out. In a home sale, that’s usually a title company, escrow company or closing attorney.
What does COE mean in real estate?
COE means close of escrow. It’s when the lender funds, the escrow agent pays the seller and other parties, and the deed is sent to be recorded.
What does an escrow agent do?
It holds the earnest money and closing funds, collects documents and payoffs, follows the written instructions of both sides and pays out at closing. It doesn’t advise either side or settle disputes.
Is a title company the same as an escrow company?
Not always. A title company searches and insures the title; an escrow company holds funds. In Florida and Texas, the title company usually does both.
How soon is earnest money due?
It’s set by the contract. On the Texas resale contract, the buyer must deliver it to the escrow agent within 3 days after the effective date.
Who gets the earnest money if the sale falls through?
It depends on the contract terms. The escrow agent can’t decide; it usually needs a release signed by both sides. Under the Texas contract, a written demand with no objection within 15 days lets it pay out.
Is an escrow account the same as escrow at closing?
No. Closing escrow ends when the sale closes. A mortgage escrow account is set up by your lender afterward to pay property taxes and insurance from your monthly payment.
This is general information, not legal advice. Escrow rules vary by state, contract and closing company. Read your own contract and ask a licensed professional about your situation.
Florida rules are from Florida Statutes §475.25(1)(k); Texas terms are from TREC One to Four Family Residential Contract (Resale), TREC No. 20-19, both read October 22, 2026. Other contract forms may differ.
Beycome Title operates in Florida, Texas, Michigan, Ohio, Illinois and Indiana. Closing fees as of November 2026: $99 in Florida (prepaid on beycome.com), $299 in Texas. Title insurance premiums, recording fees, taxes and other closing costs are extra.
Beycome prices are as of November 2026. “$0 at closing” means no Beycome fee at closing; other closing costs, taxes, title fees and any buyer-agent compensation the seller agrees to still apply.
Buyer program: no upfront fee; Beycome keeps 1% of the price with a $1,499 minimum and credits the rest, subject to the compensation the seller offers, state rebate rules and lender approval. It applies to homes listed by other agents, not to most homes sold by owner or to homes listed by Beycome sellers.
Sources
- Florida Statutes §475.25, Discipline (broker escrow duty), read October 22, 2026.
- Texas Real Estate Commission, One to Four Family Residential Contract (Resale), TREC No. 20-19.
- Consumer Financial Protection Bureau, What is an escrow or impound account?
- Consumer Financial Protection Bureau, What is a Closing Disclosure?
- Consumer Financial Protection Bureau, Closing on your new home.
- Consumer Financial Protection Bureau, Mortgage closing scams (archived).
- Beycome Title, closing fees and underwriter, October 2026.
- Beycome, listing package features, October 2026.
Disclosure & Disclaimer
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