How Escrow Works For New Kent Homebuyers

You hear people use escrow, settlement, and closing like they mean the same thing. If you are buying your first home in New Kent County, or relocating here, the steps can feel unfamiliar. This guide breaks down what happens from the moment your offer is accepted to the moment the deed is recorded and you get the keys. You will learn the roles, the timeline, how earnest money is handled, what title work covers, and how funds move safely on closing day. Let’s dive in.

What escrow means in Virginia

In Virginia, escrow, settlement, and closing often describe the same process. Once your offer is accepted, the settlement agent opens a file, holds funds, manages the title work, and prepares your final figures. You then meet to sign documents, the deed and mortgage get recorded with the New Kent County Clerk of the Circuit Court, and keys are delivered.

Local closings are handled by a title company or a settlement attorney. Some transactions designate a real estate broker to hold earnest money in a trust account. With financing, most purchases close in about 30 to 45 days from a ratified contract. Cash purchases often move faster, but your contract date, lender timeline, inspections, and title work set the pace.

Who does what in your closing team

You, the buyer

You provide the earnest money deposit and complete your loan application. You authorize inspections, send documents to your lender, secure homeowner’s insurance, and review title and closing disclosures. You also bring any remaining funds to closing by verified wire or certified funds.

The seller

The seller provides required disclosures, cooperates with inspections, and delivers clear title. If the title search finds issues, the seller works with the settlement agent to cure them. The seller signs documents and turns over keys when recording is confirmed.

Your real estate agents

Your agents help negotiate terms and keep you on deadline for deposits and contingencies. They coordinate with the settlement agent and lender, and may hold your earnest money if the contract names their brokerage as the escrow holder. They are your guide for local norms and next steps.

Your lender

The lender orders the appraisal, runs underwriting, and issues conditions you must satisfy. The lender delivers your Closing Disclosure on the required timeline and gives the final clear to close. On closing day, your lender sends loan funds to the settlement agent.

The settlement agent or title company

The settlement agent opens escrow, orders the title search, and issues a title commitment. They prepare your settlement statement and closing documents, collect and safeguard funds, record the deed and mortgage, and issue title insurance policies. They also pay off liens and disburse proceeds after recording.

Timeline from contract to keys

Every contract sets its own deadlines. Here is the typical flow so you know what to expect.

1. Contract ratification (Day 0)

   • Both parties sign and accept the contract. The agreement sets your closing date, deposit amount and due date, inspection window, financing dates, and any other contingencies.

2. Earnest money deposit (right after ratification)

   • You deliver the deposit to the designated holder within the exact timeframe in your contract. It is placed in an escrow or trust account and you should receive a receipt.

3. Open escrow and order title search (within a few days)

   • The settlement agent orders a title search and issues a title commitment listing liens, easements, and exceptions. Your lender orders the appraisal and title exam too.

4. Inspections and negotiations (often 7 to 14 days)

   • You complete the home inspection and any specialty inspections such as pest, radon, septic, or well within your inspection period. If issues arise, you and the seller negotiate repairs, credits, or price adjustments under the contract.

5. Appraisal and underwriting (throughout the process)

   • The appraisal is scheduled and underwriting continues as you submit documents. Quick responses help keep you on track for the agreed closing date.

6. Clear title issues (before clear to close)

   • If the title commitment shows items that need attention, the settlement agent and seller get them cleared. You review the commitment and raise objections within the contract timeline.

7. Closing Disclosure and final prep (3 business days before closing or earlier)

   • Federal rules require your lender to provide the Closing Disclosure at least three business days before closing. You review it carefully, ask questions, and confirm the amount you will need to bring to closing. You also schedule your final walk-through, usually 24 to 48 hours before closing.

8. Closing or settlement meeting (closing day)

   • You sign the mortgage documents and the deed of trust. The seller signs the deed and settlement statements. You deliver your funds by verified wire or certified check, and the lender sends loan proceeds.

9. Recording, funding, and keys (immediately after)

   • The settlement agent records the deed and mortgage with the New Kent County Clerk of the Circuit Court. After recording is confirmed, funds are disbursed and you receive keys per the agreement.

Earnest money basics in Virginia

How your deposit is held

Your purchase agreement names the escrow holder, often the listing brokerage, the buyer’s brokerage, or the settlement agent. Whoever holds the funds must place them in a compliant trust or escrow account and account for them properly. You should receive a written receipt when the deposit is made.

Typical amounts and timing

Deposit amounts vary by property and market conditions. Many buyers deposit around 1 to 3 percent of the purchase price or a negotiated flat amount. Deadlines are short, often a few business days after ratification, so plan to move quickly.

When deposits are refunded or forfeited

Refunds follow the contract. If you cancel within a valid contingency and follow the notice rules, your earnest money is typically returned. If you default without a valid contingency, the seller may be entitled to the deposit or other remedies based on the contract and state law.

If there is a dispute

Most contracts require the escrow holder to keep the funds until both parties sign a release or a legal resolution is reached. Disputes can move to mediation, arbitration, or court if outlined in the agreement. If funds are contested, ask your agent about the contract’s dispute process and consider consulting counsel.

Smart handling tips

• Verify the escrow holder’s name and contact information in your contract.
• Get a receipt for your deposit and save confirmations.
• Keep written records of all notices and contingency timelines.
• Ask how funds are insured and accounted for by the holder.

Title work in New Kent County

What the title search covers

A title search confirms ownership and flags anything recorded against the property. This includes mortgages, liens, judgments, easements, covenants, and similar items. The goal is to be sure you receive the ownership rights you expect.

Reading your title commitment

Your title commitment lists the requirements to close and the exceptions that the insurer will not cover unless cleared or endorsed. Your lender will require a lender’s title insurance policy. You are strongly advised to purchase an owner’s title policy to protect your equity against covered defects or errors that are not found in the public record.

Common issues and cures

Unreleased mortgages are paid off at closing. Property tax or association delinquencies are paid or prorated. Missing signatures, heir questions, or vesting concerns may require affidavits or corrective deeds. Your settlement agent coordinates these cures so you receive insurable title.

Recording at the Clerk’s Office

After you sign, the settlement agent records the deed and mortgage with the Clerk of the Circuit Court for New Kent County. Recording creates a public record of your ownership and the lender’s lien. Recording fees and any transfer taxes are collected at closing and vary by document and jurisdiction.

Practical questions to ask

• When will I receive the title commitment for review?
• What are the major exceptions and how will they be handled?
• What is the cost difference between the lender’s policy and an owner’s policy?
• Are there any boundary or access issues that need extra attention?

Closing day funding and fraud safety

How funds move

On closing day, the lender wires loan proceeds to the settlement agent. You bring your down payment and closing costs by verified wire transfer or certified funds exactly as instructed by the settlement agent. The settlement agent holds all funds in their escrow account and releases them only when conditions are met.

Timing and recording

Many settlement agents wait for confirmation that the deed and mortgage have been recorded before disbursing money. Once recording is confirmed, they pay off the seller’s lender, send out commissions, issue title policies, and release the seller’s net proceeds. Keys are transferred based on what your contract says, often once recording is complete.

Preventing wire fraud

Wire fraud is a real risk. Protect yourself with a few simple steps:

• Always confirm wiring instructions by calling a known phone number for the settlement agent. Do not rely on phone numbers in emails.
• Be cautious of any last-minute changes to wiring instructions.
• Request written confirmation from your bank when a wire is sent and save the receipt.
• If anything feels off, stop and verify before sending money.

If a wire is delayed

If your funds do not arrive in time, closing or recording can be delayed. Your settlement agent may require certified funds if a wire cannot be confirmed. Keep in close contact with your bank and the settlement agent until funds are received.

What to bring to closing

• Government-issued photo ID
• Wire confirmation number or certified check, as instructed
• Proof of homeowner’s insurance with the correct effective date
• Any documents the settlement agent requested, such as association forms
• Notarized power of attorney if you are signing through someone else

Key contingencies to track

• Financing contingency. If financing is not approved by the contract date, you may cancel and receive a refund if you follow the contract’s notice rules.
• Inspection contingency. You can inspect and negotiate repairs, credits, or cancel within the inspection period as the contract allows.
• Appraisal contingency. If the appraisal is below the price, you may renegotiate or cancel if your contract permits.
• Title objections. You must object to title issues within the contract window or accept title as stated in the commitment.

Quick checklist for New Kent buyers

• Immediately after ratification:

  • Confirm who holds your earnest money, deposit date, and get a receipt.
  • Order inspections right away within your inspection window.
  • Send loan documents to your lender.

• During escrow:

  • Review your title commitment and Closing Disclosure as soon as you receive them.
  • Finalize any repair agreements or credits.
  • Secure homeowner’s insurance and send proof to your lender and settlement agent.
  • Schedule your final walk-through 24 to 48 hours before closing.

• Before wiring funds:

  • Call the settlement agent at a known number to confirm wiring instructions.
  • Keep your wire receipt and confirmation.

• On closing day:

  • Bring your ID and funds as instructed.
  • Sign documents, confirm recording, and receive your keys.

Ready to buy in New Kent?

You deserve a smooth, informed path from contract to keys. With a clear plan for escrow, clean title, and secure funding, you can close with confidence in New Kent County. If you want a patient, local guide who explains each step and keeps you on timeline, connect with Dan Tulli to get started.

FAQs

In Virginia, who holds earnest money in a home purchase?

• Your contract names the holder, often the listing brokerage, the buyer’s brokerage, or the settlement agent, and the holder must keep funds in a trust or escrow account and provide a receipt.

If I cancel during my inspection window, do I get my deposit back?

• If you cancel as permitted by the inspection contingency and follow the contract’s notice rules and timelines, your earnest money is typically refunded.

What happens if the title search finds a lien in New Kent?

• The lien must be addressed, usually paid off from the seller’s proceeds or cleared before closing, and your settlement agent coordinates the resolution.

Do New Kent buyers need owner’s title insurance?

• Your lender requires a lender’s policy, and an owner’s policy is strongly recommended to protect your equity against covered title defects or recording errors.

Can I close on a New Kent home remotely?

• Many settlement agents offer remote or hybrid closings within state and lender rules, so ask early about acceptable signing and notarization options for your loan and location.