Buying in Sanford and hearing the word “escrow” at every turn? You are not alone. If you are a first-time buyer or relocating to Seminole County, the steps between offer and keys can feel opaque. This guide breaks down how escrow works in Florida, what a title company does, and what to expect locally in Sanford from acceptance to recording. By the end, you will know who holds your money, what the timeline looks like, and how to keep your closing safe. Let’s dive in.
Escrow basics in Florida
Escrow is a neutral holding arrangement for money and sometimes documents until contract terms are met. It protects you and the seller by keeping funds secure until milestones are completed. In Florida, the escrow holder is often a title company. An attorney can hold escrow, though that is less common here, and a real estate broker may hold the earnest money if the contract names the brokerage.
Your purchase contract designates the escrow agent and sets the deposit deadline. The escrow holder follows the written contract and closing instructions. Funds are not released until the closing agent verifies that the conditions in the contract have been satisfied.
Who does what in a Sanford closing
Title company or closing agent
The title company opens your escrow file, conducts the title search, and issues a title commitment that lists any defects and the requirements to close. It prepares your settlement statement and closing documents, receives and disburses funds, records the deed and mortgage with Seminole County, and issues title insurance policies after closing.
Buyer responsibilities
You deliver the earnest money by the contract deadline, complete inspections, and pursue loan approval if you are financing. You review the title commitment, survey, and any HOA or condo documents. You also decide whether to purchase an owner’s title insurance policy and bring final funds to closing.
Seller responsibilities
The seller provides marketable title and signs the deed. They handle required disclosures and typical seller-side costs as agreed in the contract. If there are liens or title defects, the seller usually works with the title company to clear them before closing.
Lender role
Your lender orders the appraisal, verifies underwriting conditions, and prepares loan documents. The lender wires loan proceeds to the title company and typically requires a lender’s title insurance policy.
Your real estate agent
Your agent helps you negotiate contract terms, including who holds earnest money and the deposit timeline. If a brokerage is named as escrow agent, the broker must follow Florida escrow handling rules. Your agent coordinates with the title company and lender so your milestones stay on track.
The typical escrow timeline
Florida contracts drive deadlines, but here is a common flow for financed Sanford purchases.
Right after offer acceptance
Once both parties sign, the effective date starts the clock. You usually deliver the earnest money within a short window, often 1 to 3 business days. The title company opens the file, orders payoffs, starts the title search, and begins preparing the title commitment.
First 1 to 2 weeks
Most buyers have a defined inspection period, commonly 7 to 15 days. You schedule a home inspection and negotiate repairs or credits if needed. Your lender starts underwriting and orders the appraisal, which often occurs within 1 to 2 weeks of ordering depending on appraiser availability.
Weeks 2 to 4
The title company issues the title commitment and identifies any liens, judgments, or chain-of-title issues to clear. If a survey is needed, it is usually ordered during this window. You also review HOA or condo documents when applicable and confirm insurance and flood considerations.
Final week before closing
For most consumer mortgage loans, the lender issues a Closing Disclosure at least 3 business days before closing. The title company finalizes prorations for taxes and HOA dues, calculates recording fees, and provides exact funds to close. You complete your final walk-through, usually 24 to 48 hours before closing, and send your funds by wire or certified funds following the title company’s instructions.
Closing day and after
You sign documents in person or through a remote option if available. The title company records the deed and mortgage with the Seminole County Clerk of the Circuit Court and Comptroller. After recording and paying off any liens or mortgages, the title company disburses seller proceeds and issues title insurance policies.
Title search, commitment, and insurance
What the title search covers
The title company examines public records to confirm the seller’s ownership and uncover liens, judgments, easements, or other encumbrances. In Sanford, that includes Seminole County records for deeds, mortgages, and tax items, as well as checks for municipal liens or code enforcement matters. It may also flag permitting histories for renovations and any recorded easements.
Title commitment and clearing issues
The title commitment lists exceptions and conditions that must be resolved to issue title insurance. Common items include paying off the seller’s mortgage, clearing HOA liens, and verifying proper releases for prior encumbrances. If an unpermitted improvement or late lien surfaces, the title company works with the parties to resolve it before closing.
Owner’s and lender’s title policies
A lender’s title policy protects the lender’s interest and is typically required with a mortgage. An owner’s title policy is optional but strongly recommended because it protects you against covered title defects that existed at closing, such as undisclosed liens or forged documents. Be sure to review coverage with the title company so you understand what is and is not included.
Fees, deposits, and who pays what
- Earnest money: Your initial deposit shows good faith and is credited to you at closing. Amounts vary by local market dynamics. Whether it is refundable depends on your contract and contingencies.
- Buyer-side costs: Typical items include lender fees, appraisal, survey if required, recording fees for the mortgage, and the lender’s title policy. Many buyers also choose to purchase an owner’s policy.
- Seller-side costs: The seller commonly pays documentary stamp tax on the deed, broker commission, and any mortgage payoffs and prorations. Customs can vary and are negotiable.
- Prorations: Florida property taxes are paid in arrears, so taxes and applicable HOA or special assessments are prorated based on your closing date and local billing practices.
- Recording: Recording fees are charged by Seminole County for the deed and mortgage. The title company collects and pays these.
Always rely on your contract for who pays what. Your settlement statement will list every charge and credit line by line.
Sanford and Seminole County specifics
Local records drive much of the title work. The title company searches Seminole County official records for deeds, mortgages, liens, and judgments, and cross checks with the property appraiser and tax offices. Expect verification of any recorded permits for additions or major renovations.
Flood zone and stormwater factors are common in Central Florida. Your lender will obtain a flood determination. If a property is in a Special Flood Hazard Area, flood insurance is typically required. Be sure to review this early, since the cost can affect your monthly budget.
Homeowners associations and condo associations are common in parts of Sanford and neighboring communities. You will want to review the association documents and any estoppel letters requested by the title company. A current or updated survey may be required by your lender or the title insurer.
Wiring and fraud safety
Wire fraud attempts target real estate closings. Take these steps to protect your funds:
- Get wiring instructions directly from the title company, and verify them by calling a published office number you find independently.
- Never accept changes to wiring instructions by email without a confirmed call to the title company.
- Send a small test wire only if the title company approves that approach, then confirm receipt before sending the balance.
- If anything feels off, pause and call the title office before you send money.
If a dispute arises over deposits
Disputes follow the contract’s dispute resolution terms. If a broker holds the funds, state procedures may apply and can include an escrow disbursement order. If a title company holds the funds, it will keep the money in escrow until both parties sign a release or a court directs disbursement. Your agent can help you understand and follow the contract steps.
Quick buyer checklist for Sanford tours
- Confirm who will hold your earnest money and the deposit deadline before you write an offer.
- Check the seller’s name as it appears in county records and ask about any known liens or encumbrances.
- Ask for recent property tax bills and any HOA or condo documents early in the inspection period.
- Request the property’s flood determination or check maps and discuss insurance needs with your lender.
- Ask whether a prior survey is available or if a new survey is needed.
- Plan wire verification steps with the title company well before closing.
Ready for next steps?
Escrow does not have to be confusing. With a clear plan, a careful review of title, and the right closing team, you can move from offer to keys with confidence in Sanford. If you want a local guide who explains every step and coordinates your closing details, connect with Jen King for a calm, concierge-level buying experience.
FAQs
In a Sanford purchase, who usually holds my earnest money?
- The contract names the escrow agent, which is often the title company in Sanford, though a brokerage can hold it if designated.
When is earnest money refundable under a Florida contract?
- If you cancel within a valid contingency period, such as inspection or financing, the deposit is typically returned per the contract.
What does a Seminole County title search include?
- Public records for deeds, mortgages, liens, judgments, easements, and often checks for municipal liens, code issues, and recorded permits.
What is the difference between closing and recording in Sanford?
- Closing is when you sign and funds are disbursed; recording happens afterward when the deed and mortgage are entered into Seminole County records.
Who pays for owner’s title insurance in Seminole County?
- It is negotiable and can vary by local custom; the lender’s policy is usually a buyer cost when there is a mortgage.
How long does a financed Sanford purchase usually take?
- Many conventional loans close in about 21 to 45 days from contract, with timing driven by appraisal, underwriting, and title clearance.
How do I safely wire funds for my Sanford closing?
- Call the title company at a verified phone number to confirm wiring instructions, and never accept email-only changes without a call.
