Mortgage brokers, private escrow or title insurance companies, and lawyers usually provide escrow services. Under Washington state's limited-practice rule, certified nonlawyers can prepare and complete certain court-approved forms for use in closing a loan, extending credit, and the sale or other transfer of real property.

Escrow services by a neutral third party are essential to the proper closing and recording of instruments and delivery of monies. It should be remembered, however, that escrow agents obtain information and take their instruction from the parties; they do not guarantee or protect the rights of either party in assuring that documents are consistent with purchase and sale agreements or either party's understanding of the transaction.

The escrow agent must prepare and obtain approval by the parties of "truth in lending" and "closing" statements as required by the federal Real Estate Settlement Procedures Act (RESPA). These forms and disclosures are required to advise borrowers of the cost and interest rates in the transaction. You may wish to have your lawyer review the documents and explain the content and consequences.

One of the most important instruments for closing is a deed, which transfers ownership of property from the seller to the buyer. There are several types of deeds, such as "warranty deed," "special warranty deed," "bargain and sale deed" and "quit claim deed." The type of deed affects the buyer`s rights against the seller. The manner in which the buyer`s name appears on the document is also important, since it may affect the form of ownership and the tax liability of the owner.

Filing Documents

All documents of ownership of real property and those reflecting a security interest in real property should be recorded (officially filed) in the county where the property is located. This procedure is necessary to protect one`s ownership of property. To be eligible for recording, the documents must meet certain statutory requirements. For example, the document must contain a legible and correctly stated legal description and an official acknowledgment (notarization) of the signatures. All documents pertaining to your transaction should be kept in a secure yet accessible location, such as a safe-deposit box. These important papers may be useful when preparing tax returns or if planning to sell that property.