Colorado Real Estate Escrow Process: Step-by-Step Guide

Introduction: Securing Funds and Documents

Escrow is one of the most important parts of any real estate transaction, yet many buyers and sellers in Colorado ask: “What exactly happens during the escrow process?”

In this blog, we’ll break down the Colorado real estate escrow process, explain why it matters, and show why Jerad Larkin and Chicago Title Colorado are trusted across Denver, Colorado Springs, and the Front Range.

What is Escrow in Real Estate?

Escrow is the use of a neutral third party - usually a title company - to securely hold money and documents until all conditions of the real estate contract are met.

Escrow protects:

• Buyers – Ensures their funds aren’t released until ownership is transferred.

• Sellers – Guarantees they receive payment once conditions are satisfied.

• Lenders – Confirms their requirements are met before disbursing funds.

  
  

Step-by-Step Colorado Real Estate Escrow Process

1. Opening Escrow

   • After the purchase contract is signed, escrow is opened with a title company.

2. Deposit of Funds

   • Buyer deposits earnest money into escrow.

   • Later, loan funds and down payment are also held in escrow.

3. Title Search & Commitment

   • Title company checks ownership history and issues a commitment.

4. Clearing Requirements

   • Liens, judgments, and lender requirements are resolved.

5. Closing Appointment

   • Buyer and seller sign all required documents.

6. Disbursement of Funds

   • Escrow officer distributes money to seller, lender, and service providers.

7. Recording with County

   • The deed is recorded, officially transferring ownership.

     
     

Why Escrow Matters in Colorado

Colorado’s competitive real estate market means escrow plays a vital role in protecting both sides. It ensures:

• Security – Funds are safely managed.

• Neutrality – Escrow officers act as impartial third parties.

• Compliance – Transactions follow state requirements, including Colorado’s Good Funds Law.

  
  

Typical Escrow Fees in Colorado

Escrow fees vary by provider but are typically a few hundred dollars. Costs are often split between buyer and seller, depending on the purchase contract.

Why Choose Chicago Title Colorado

Jerad Larkin and Chicago Title Colorado provide escrow services that stand out because they offer:

• Expert escrow officers with local knowledge.

• Secure fund handling compliant with Colorado law.

• Clear communication throughout the escrow process.

• Educational resources for agents and clients.

• National financial strength for added security.

  
  

Real-Life Examples

• A Denver buyer praised secure handling of earnest money during escrow.

• A Colorado Springs seller appreciated quick disbursement of funds after closing.

• A Boulder agent trusted Chicago Title’s escrow team to manage a complex multi-property deal.

  
  

Conclusion

So, what is the Colorado real estate escrow process?

It’s the step-by-step system that ensures money and documents are handled fairly until closing. With Jerad Larkin and Chicago Title Colorado, buyers, sellers, and lenders can trust that their transactions are managed smoothly and securely.

Questions? Contact:

Questions? Contact Jerad Larkin at Chicago Title Colorado.

📞 303.630.9430

📧 Info@MileHighTitleGuy.com

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