top of page


Escrow Company vs Title Company: What's the Difference?

In the world of real estate, you may hear the terms title and escrow interchanged quite a bit. When it comes to closing on your new home, the title company and the escrow company actually have two very different jobs. Read on to learn more about these important roles and how they differ so you can be prepared for the big day.

Title: What Does it Mean?

The term title refers to the property owner’s legal rights to own, use, and even dispose of a specific address or piece of property. The title company makes sure that your title is insured by applying policies to the buyer and lender. These policies protect you against any problems with the title that may arise in the future such as liens or even fraud.

Escrow: What Does it Do?

The escrow on a transaction arranges the management and transfer of funds between two parties. The escrow company or agent is the third-party that manages and holds onto the money exchanged between the buyer and seller as well as the lender. An escrow company is there to ensure that the offer is accurate and that every cent goes to the right place and the right people once the contract is carried out.

Escrow Company vs Title Company

Many companies can handle both the title and escrow aspects of a transaction. The title company will research the history of the property to make sure that the transfer of ownership goes smoothly and that the title is clean. The escrow company manages all documents and financial transactions that are required in order to close. They will work with both buyer and seller to prepare documents and coordinate with the lender to ensure that the closing costs are accurate and that funds go to the right place once the deal is closed.

bottom of page