How Escrow Works in Palm Beach County

Buying in West Palm Beach and hearing new terms like escrow, estoppel and Closing Disclosure? You are not alone. Florida has its own process and timeline, and a few local details can add days if you do not plan ahead. This guide walks you through how escrow works in Palm Beach County, what happens to your deposit, which inspections matter here, and the simple steps that keep your closing on schedule. Let’s dive in.

Escrow basics in Palm Beach County

Escrow is the period between an accepted offer and recording the deed. In Palm Beach County, a licensed title company usually serves as the closing and escrow agent. They hold your earnest money in a trust account, coordinate title work, collect and disburse funds, and record your deed with the Palm Beach County Clerk & Comptroller.

Most residential sales use the Florida Realtors/Florida Bar contract forms. These contracts set the deadlines for deposits, inspections, financing and closing, and include instructions for the escrow agent. If your purchase involves an association, the HOA or condo association provides resale documents and fee details that factor into escrow timing.

From offer to closing: step by step

1. Offer accepted and effective date

• When both parties sign the contract, the effective date starts the clock for every deadline that follows.

2. Initial earnest money deposit

• You typically have a short window, often within 3 business days of the effective date, to place your deposit with the named escrow agent. The exact timing is in your contract.

3. Title order and early due diligence

• The title company opens the file, begins a title search and issues a title commitment. If you are financing, your lender starts underwriting and orders the appraisal.

4. Inspection period

• The inspection window is negotiated in the contract, commonly 7 to 15 days for many homes, though luxury and waterfront properties may require more time. You can request repairs, credits or cancel within the contract’s terms.

5. HOA or condo resale documents

• For association properties, the closing agent or seller orders the estoppel/resale documents that show dues, assessments and account status. Turnaround time and fees vary and can affect your schedule.

6. Loan underwriting and appraisal

• Your lender validates income and assets and confirms the appraised value supports the loan. If the appraisal comes in low, you may renegotiate or bring additional funds per your contract.

7. Title commitment and clearing items

• The title company lists any requirements to insure title, such as payoff letters or releases of liens. The parties work to clear or insure over those issues.

8. Repair resolution and escrows

• Agreed repairs are completed before closing or handled with an escrow holdback at the title company. Release conditions must be set in writing.

9. Closing Disclosure and final conditions

• For financed deals, federal rules require your lender to provide a Closing Disclosure at least 3 business days before closing. Review charges and cash to close carefully.

10. Final walkthrough and signing

• You typically complete the final walkthrough 24 to 48 hours before closing. Sign at the title company, or arrange a mobile or remote signing if needed.

11. Funding, recording and keys

• After signing, funds are disbursed, the deed is recorded with the County, and keys change hands per the contract.

Money in escrow: deposits and costs

• Who holds your funds: The named escrow agent, usually the title company, holds earnest money in a trust account and disburses funds only under written closing instructions.
• Typical deposit practices: Luxury buyers often negotiate deposits as a percentage of price, commonly 1 to 3 percent in many markets, or a flat amount that signals strength. Your deposit is credited to you at closing.
• Escrow holdbacks: If work cannot be completed before closing, a portion of funds can be held in escrow and released once specified repairs are done and documented.
• Prorations and fees: Taxes, association dues, utilities and any rental income are prorated at closing per your contract. Title insurance, recording fees, documentary stamps, and closing fees are allocated by contract and local custom. Many items are negotiable.
• Wire safety: Wire fraud is a real risk. Always confirm wire instructions with your title company using a trusted phone number you already have, not one from an email.

Inspections and contingencies that matter here

• General home inspection: Structure, electrical, plumbing and HVAC.
• WDO/pest inspection: Common in Florida and often required by lenders.
• Roof inspection: Roof condition and remaining life are significant in storm-prone areas.
• Pool and spa inspection: For properties with these features.
• Wind mitigation inspection: Can help reduce your homeowner insurance premium.
• Waterfront due diligence: Seawall and dock inspections, often by an engineer or specialist, are strongly recommended for high-value waterfront homes.
• Flood and elevation: Confirm flood zone and consider an Elevation Certificate for insurance and lender requirements.
• Climate-related checks: Mold, humidity and duct inspections can be helpful in South Florida.

Order priority inspections immediately after the effective date, especially if you need specialty reports.

HOA and condo documents: what to expect

For association properties, the estoppel or resale package discloses dues, assessments, pending litigation and owner account status. Associations can charge fees and have set timelines to respond. Delays or unexpected assessments are common causes of schedule changes, so start early and read carefully.

Title, survey and waterfront checks

Your title search will flag easements, encumbrances or defects that must be cured or insured over. Lenders often require a current survey. For waterfront properties, confirm dock permits, seawall status and mean high water lines, and review any recorded riparian rights. Older or coastal estates may require more curative work or updated surveys, which can add time.

Financing timeline and disclosures

If you are financing, expect a 30 to 45 day window in many cases to complete underwriting and appraisal. You must receive the lender’s Closing Disclosure at least 3 business days before closing, so plan your final walkthrough and moving logistics with that timing in mind.

Common delays and how to avoid them

• Association documents and assessments: Order resale/estoppel documents early and budget for fees.
• Title exceptions and liens: Engage quickly with the title company to clear items.
• Repairs and contractor timing: Decide early whether to complete work pre-closing or structure an escrow holdback with clear release terms.
• Insurance underwriting: Start windstorm and flood insurance quotes early. Provide wind mitigation documentation to help with pricing and timing.
• Appraisal gaps: In competitive segments, plan for negotiation or additional funds if the appraisal is short.
• Wire and funding issues: Verify wiring instructions by phone and plan transfer timing well before closing.

Cash vs financed timelines

• Cash purchase with clean title and no complex issues: about 7 to 21 days.
• Financed conventional purchase with standard underwriting and appraisal: about 30 to 45 days.
• Complex waterfront, association or title cures, or lender delays: 45 to 90+ days.

Your closing day: what happens

You will do a final walkthrough to confirm condition, then sign at the title company or via a mobile or remote signing solution. The lender wires funds if applicable. The title company disburses funds, pays off any liens, and records the deed with the Palm Beach County Clerk & Comptroller. After recording, you receive keys per the contract.

How Triple Crown Group keeps closings on track

For high-value Palm Beach County homes, details drive timelines. As a founder-led, vertically integrated firm, Triple Crown Group combines brokerage, construction management and estate management under one roof. That means you get a single accountable team from offer to recording and beyond.

Here is how that helps you in escrow:

• Inspection orchestration: We move fast on general, WDO, roof, pool and specialty waterfront inspections, and we prioritize items that can lengthen escrow, like seawall engineering.
• Repair and holdback strategy: If work cannot be completed before closing, we define a practical scope and escrow holdback with clear release criteria, then oversee the work after closing.
• Insurance readiness: We help you gather wind mitigation and property details early so you can secure coverage and keep underwriting moving.
• Title and survey support: We coordinate with the title company and surveyor to resolve curative items and confirm waterfront specifics.
• Remote closing logistics: For out-of-area buyers, we plan notarization and signing options early and keep your timeline tight.

If you plan renovations or want turnkey property operations after closing, our construction management and estate management teams step in immediately so your new home is ready on your schedule.

Ready to navigate escrow with clarity and confidence? Connect with the Triple Crown Group team to plan your purchase and keep your closing on track.

FAQs

Who holds earnest money in Palm Beach County escrow?

• The designated escrow agent, most often a licensed title company, holds your funds in a trust account and disburses only under written instructions.

How fast must I deposit earnest money after my offer is accepted?

• Under common Florida contract forms, the initial deposit is due quickly, often within 3 business days of the effective date; your contract controls the exact timing.

What is a customary earnest money amount for West Palm Beach luxury homes?

• Luxury buyers often negotiate deposits as a meaningful percentage or a flat sum, with many markets using 1 to 3 percent as a reference point, subject to negotiation.

Which inspections are essential for a waterfront home in Palm Beach County?

• Prioritize seawall and dock inspections, general home and roof, WDO/pest, pool systems, wind mitigation and flood or elevation documentation.

Who pays for the owner’s title policy and what does it cover?

• Payment is negotiable and can follow local custom; the owner’s policy insures your title against covered defects subject to policy terms.

What happens if the appraisal is below the purchase price?

• You may renegotiate price, increase cash to cover a gap, or cancel if your contract allows; your lender will not lend above the appraised value.

How long does a typical financed closing take in West Palm Beach?

• Many financed purchases close in about 30 to 45 days, assuming normal underwriting, appraisal and association document timelines.

What is an escrow holdback and when is it used?

• It is money set aside by the title company at closing to ensure agreed repairs are completed, with written conditions for release after the work is verified.

How do I avoid wire fraud during a high-value closing?

• Call your title company using a trusted phone number to verify wire instructions and never rely solely on email for account details.

Do I need flood insurance and how could it affect closing?

• If the property is in a lender-required flood zone and you have a regulated mortgage, flood insurance will be required and can impact underwriting timing and cost.

What local permits or association items can delay closing?

• Unresolved permits, seawall or dock approvals, and association estoppel or special assessment issues are common sources of delay; start checks early.