Think of the escrow company as the middle-man. Once your offer has been accepted by the seller, nearly all transactions in this state will involve the escrow company, which holds onto most of the written contract you have with the seller, as well as the deposit/earnest money that you have put down for the purchase. Escrow will also be in charge of facilitating the loan documents from the bank so that you can close on the purchase of your property, as well as helping all parties to sign the required documents to complete the transaction.
Read more about escrow's role on the guide prepared by one my escrow partners, Talon Title Northwest, at the link below:
ESCROW
Title to the property is often pulled through the same escrow company that you're using - but not always. Traditionally, the buyer's agent is given the courtesy of choosing the escrow company, while the seller's agent gets to direct the title company. Among other things, the title company's job is to check that the title to the property is clear and free of such things as liens, encumbrances or defects so that ownership can be freely transferred from the existing seller to you. If the title report comes up clear for transfer, they will issue you and your lender policies called title insurance. Various types of title insurance grant you and the bank different levels of protections in the case that defects or unrecorded issues are later discovered or are found to have been overlooked. Read more about the basics of title insurance at Talon Title Northwest's guide to title insurance, which is linked to below:
TITLE INSURANCE
Insider's Insight: Title and escrow fees are regulated by the State of Washington and the fees of various companies are generally fairly similar. Some law offices also offer escrow and closing services, but my experience has been that with few exceptions, professional, full-time title and escrow companies offer superior insight, experience and service. In what may be the biggest purchase you've made to date, it's my recommendation that you stick with experienced and knowledgeable service providers.