3.4 Washington Closing Procedures

The Washington Escrow Closing

Washington is an escrow closing (sometimes called "table-less" or "separate signing") state. A neutral closing/escrow agent — often inside a title company — runs the closing. Attorneys are not required, and the real estate broker coordinates but never conducts the closing. Buyer and seller frequently sign on different days; there is no single round-the-table signing as in some eastern states.

Escrow Process Sequence

1. Escrow opened, usually with delivery of earnest money.
2. Closing agent gathers contract, addenda, and instructions.
3. Title search ordered; preliminary commitment issued.
4. Lender prepares loan documents.
5. Parties sign separately; buyer brings certified funds.
6. Funds collected and held in escrow trust.
7. Recording of the deed and security instrument.
8. Funds disbursed after recording confirms.

Federal TRID Timing (TILA-RESPA Integrated Disclosure)

Minor changes (a clerical typo, a small fee adjustment) do not restart the 3-day clock. Only the three TRID triggers above force a new waiting period.

Title Examination

The title company searches public records, examines the chain of title, identifies liens, easements, and encumbrances, issues the preliminary commitment, and delivers the title insurance policy at closing. Standard practice: the seller pays for the owner's policy; the buyer pays for the lender's policy (negotiable on Form 21).

Exam tip: The CD's three-business-day rule counts Saturdays as business days for delivery purposes but excludes Sundays and federal holidays — a frequent trap on the national portion that resurfaces in state scenarios.

The Broker's Role at Closing

A Washington broker does not draft closing documents, calculate the official prorations, or disburse funds — those are the closing agent's job. The broker's closing duties are coordination and communication: making sure contingencies were timely satisfied or waived, delivering required disclosures, helping the parties meet signing appointments, and watching that the contract's negotiated cost allocations (who pays the owner's title policy, REET, escrow fee) actually flow through to the settlement statement.

If a broker spots an error on the settlement statement, the broker raises it with the closing agent rather than "fixing" numbers — only the closing agent reconciles the file.

Deeds, Prorations, and the Excise Tax

Washington Deed Types

The statutory warranty deed is the residential default because its short statutory language imports the full set of covenants (seisin, right to convey, against encumbrances, quiet enjoyment, warranty).

Tax and Proration Mechanics

Washington property taxes are paid in the current year: first half due April 30, second half due October 31. At closing, taxes are prorated:

Real Estate Excise Tax (REET) — Graduated

Washington's Real Estate Excise Tax (REET) is a graduated state tax on the sale price, normally paid by the seller, plus a local REET (up to ~0.5%). The state brackets effective through 2026 are:

Timberland and agricultural land are taxed at a flat 1.28% regardless of price.

Worked REET example (state portion): On a $700,000 home: 1.1% × $525,000 = $5,775, plus 1.28% × $175,000 = $2,240, for $8,015 state REET, before adding local REET.

Recording

Deeds are recorded with the County Auditor (the recorder of deeds) in the county where the property lies. Recording requires a completed Real Estate Excise Tax Affidavit and payment of REET and per-page recording fees. Recording gives constructive notice and sets priority among interests.

Exam trap: REET is graduated, not flat — a $2 million sale does NOT pay 2.75% on the whole price; each bracket's rate applies only to its slice.

Putting It Together: A Closing Snapshot

Consider a $700,000 Spokane sale. The seller typically owes $8,015 state REET (computed above) plus local REET, and customarily pays the owner's title policy and half the escrow fee. The buyer brings certified funds for the down payment, the lender's title policy, and prepaid items, after receiving the Closing Disclosure at least 3 business days earlier. Property taxes are prorated using the April 30 / October 31 schedule — if the seller has paid the full year, the buyer credits the seller for the days after closing.

The closing agent records the statutory warranty deed and the deed of trust with the County Auditor along with the REET Affidavit, then disburses funds once recording confirms. Recording — not signing — is the moment ownership becomes a matter of public record and priority is fixed against later claims.

Note: Washington uses a deed of trust, not a mortgage, as the standard security instrument, which is why nonjudicial trustee's sale foreclosure is common in the state.