Transaction Coordination

Escrow vs Title Company: What Each Does at Closing

The difference between an escrow company, a title company and a closing attorney, which one runs closings where, who holds the earnest money, and what a transaction coordinator sends to each.

Ijharul Islam October 21, 2026 8 min read

Escrow vs title company, in short: a title company searches the property's ownership record and issues title insurance; an escrow company holds money and documents as a neutral party and pays everyone out at closing. Many title companies do both. In the West the closer is usually called an escrow agent, and some states require an attorney.

More on this topic: Contract to close: process and checklists, every guide in one place.

The overlap is why the terms get mixed up. Below we separate the roles, show which one runs closings in different parts of the country, answer who holds the earnest money, and list what a transaction coordinator sends to title or escrow so the closing stays on schedule.

Key takeaways

Title is about ownership: the search, the title commitment and the title insurance policies.
Escrow is about money and paperwork: collecting funds, holding them, and disbursing them under the contract and loan.
One company often does both; in most of the country a title company's settlement agent conducts the closing, per the CFPB.
Some states, particularly in the Northeast and South, require a closing attorney. In Georgia, only a licensed Georgia attorney may close a real estate transaction.
Earnest money is held by whoever the contract names: a title or escrow company, an attorney or a brokerage trust account.

What does a title company do?

A title company checks that the seller can transfer clear ownership and insures it. It searches the public records, issues a title commitment listing what must be cleared and what the policy won't cover, and issues title insurance at closing. The CFPB says most lenders require a lender's title policy, which protects the amount they lend, and that buyers may want an owner's policy to protect their own investment.

In most of the country, the title company also runs the closing through its settlement agent. For reading the commitment, see title commitment exceptions and objections.

What does an escrow company do?

An escrow company is a neutral holder. It collects money and documents from both sides, follows written escrow instructions, and releases everything only when the conditions are met. The CFPB describes the closing agent's job as collecting the money from the parties, paying it out according to the sales contract and the loan, preparing documents that support the transfer, and recording them with the county.

Escrow is regulated by the state. California is an example: anyone in business as an escrow agent there must be a corporation licensed by the commissioner, with exemptions that include banks and insurance companies (so title insurers), attorneys with a genuine client in the deal who aren't in the escrow business, and real estate brokers acting in their own transactions.

Escrow company vs title company: what's the difference?

	Title company	Escrow company	Closing attorney
Main job	Search title, clear defects, issue title insurance	Hold funds and documents, disburse at closing	Give legal advice, prepare documents, run the closing
Issues title insurance	Yes	Usually not; title comes from a title company	Varies by state
Holds earnest money	Often	Often	Often, in an attorney trust account
Runs the closing	In most of the country	Usually in the West, where signings are often separate	Where state law or custom requires it
Who it represents	Neutral; insures the buyer and lender	Neutral; follows both sides' instructions	May represent one party; some states expect one for each side

In practice, a title company with an escrow department can be both your title and your escrow company; the people are the title officer and the escrow (or closing) officer.

Which states use escrow companies, title companies or attorneys?

There's no official national map, but the CFPB describes the pattern: in most of the country a settlement agent from a title insurance company conducts the closing; in the West the person is known as an escrow agent and the parties usually sign separately; and some states, particularly in the Northeast and South, require a closing attorney from each side. Elsewhere it notes the settlement agent is often a title or escrow company in most western states, or a closing attorney in some eastern states.

Georgia is a clear example of an attorney state. In 2003 the Supreme Court of Georgia held that only a licensed Georgia attorney may prepare or facilitate the execution of a deed of conveyance, and said it is the unauthorized practice of law for anyone else to close a real estate transaction for a seller, borrower or lender. If you work across states, ask the listing agent or the closer who runs closings locally before you build your timeline.

Who holds the earnest money?

The person or company the purchase contract names. Depending on the state and the form, that's the title company, the escrow company, a closing attorney or the listing brokerage's trust account. The contract also sets the deadline to deliver it and how it's released if the deal ends, so read both. See earnest money deadlines.

Wherever it goes, the buyer should get wiring instructions only from the holder, and confirm them by calling a number they found independently. Our wire fraud checklist has the steps.

What does a transaction coordinator send to title or escrow?

Send title or escrow the same package as soon as the contract is signed, and every change after that. A typical opening package:

The fully executed contract with every counter-offer, addendum and amendment.
Earnest money details, or the receipt if it's already delivered.
Names, emails and phone numbers for buyers, sellers, agents, the lender and loan officer.
The seller's mortgage lender and loan number, so the payoff can be ordered.
The HOA or management company contact, for resale documents and dues.
Any existing survey or prior title policy from the seller.
If the seller is doing a 1031 exchange, the qualified intermediary's name and contact, so the proceeds go to the intermediary under the exchange agreement rather than to the seller. The free 1031 exchange deadline calculator gives the 45-day and 180-day dates to note on the file.
Later: amendments that change dates, price or credits; the repair agreement; and the CDA before closing.

Ask for the title commitment, the draft settlement statement and the closing instructions in return, and check the commitment's requirements against your deadlines. When the draft settlement statement comes back, the free property tax proration calculator checks the tax proration from the annual bill and the closing date, and the seller net sheet calculator gives a quick estimate of the seller's net to compare it with. Need the seller side's list? See documents to request from the seller.

Keep title and escrow on the same page in Closingbird

Each Closingbird file has its own email address, and with Gmail or Outlook connected, attachments land on the right transaction, so the commitment and settlement statement drafts stay with the deal. You can email the title or escrow officer from the file with your own templates, request documents from them with a no-login upload link, and generate the CDA and email it to escrow from the Commission card (how). See Email documents into a transaction.

Frequently asked questions

Is escrow the same as a title company?

No. Title deals with ownership and title insurance; escrow holds and disburses money and documents. Many title companies offer escrow and closing services too, so one company often does both.

What does a title company do at closing?

In most of the country, its settlement agent conducts the closing: collects the funds, has the documents signed, pays everyone out under the contract and loan, records the deed and issues the title policies.

Who holds earnest money, the title company or the broker?

Whoever the purchase contract names. It may be the title or escrow company, a closing attorney or the listing brokerage's trust account, depending on the state and the form.

Which states require an attorney at closing?

The CFPB says some states, particularly in the Northeast and South, require a closing attorney. Georgia is one: its Supreme Court held in 2003 that only a licensed Georgia attorney may close a real estate transaction. Check your state's rules.

Do I need both an escrow company and a title company?

You need title work and someone to handle the money. In many areas one title company does both; in parts of the West a separate escrow company works alongside a title insurer; in attorney states the attorney often handles both.

Run it in Closingbird

Keep the contract, amendments, commitment and CDA on one file that title, escrow and the agents can rely on. Start a free trial (14-day free trial, no credit card required) or see pricing.

Sources

Checked in October 2026. Rules and prices change, and many vary by state, so confirm with the source, your state's real estate commission or your broker before you rely on them.

#closing #title and escrow #transaction coordinator