Buying or selling in Charleston comes with a lot of moving parts, and escrow is one of the most important. If you are wondering who holds your money, how long things take, or what happens on closing day, you are not alone. In this guide, you will get a clear, step-by-step look at how escrow works in Kanawha County, from earnest money to lender escrow accounts for taxes and insurance. Let’s dive in.
What escrow means in Charleston
Escrow is a neutral process that holds funds and instructions until your purchase contract conditions are met. An escrow agent follows the contract, collects money, coordinates documents, and releases funds only when it is time to close. In Charleston, this role is often handled by a title company or a real estate attorney.
There are two types of escrow to know:
- Transaction escrow: Handles earnest money, closing funds, prorations, and disbursements for your sale or purchase.
- Lender escrow (impound) account: After closing, your mortgage lender may collect monthly amounts for property taxes and homeowners insurance, then pays those bills when due.
Who handles escrow locally
In Kanawha County, title companies and closing attorneys commonly serve as escrow agents. Your purchase contract will name who holds the earnest money and who conducts the closing. Real estate brokerages may briefly hold earnest money, but it is usually deposited into a title company or attorney trust account per the contract.
Attorney-led closings are common in West Virginia. If you need help locating a real estate attorney, you can use the West Virginia State Bar’s directory to get started.
The escrow timeline from offer to close
Every deal is unique, but most Charleston transactions follow this general flow.
Day 0–3: Earnest money and setup
- You deliver earnest money as the contract requires, often within 24–72 hours after acceptance.
- The escrow agent receives the contract and deposits your funds into a trust account.
- Plan your inspections and confirm who will hold the earnest money and where it is deposited.
Days 3–14: Inspections and title search
- You schedule home and property inspections within your contingency window.
- The title company or attorney orders a title search to check for mortgages, liens, judgments, easements, or other issues.
- If there is an HOA, relevant documents and any estoppel letters are collected.
Days 7–30+: Loan processing and appraisal (if financed)
- Your lender orders an appraisal and reviews income, assets, and credit.
- Appraisals often take 7–21 days, depending on appraiser availability.
- Underwriting works in parallel and may add conditions that you will clear with your lender.
Days 14–30+: Clear title and contingencies
- The title company clears any items that would block closing, such as lien payoffs.
- Inspection, financing, and other contingencies are resolved.
- When title is clear and the loan is ready, the closing date is set.
Day 30–45: Closing, funding, and recording
- You sign closing documents. The seller signs the deed and payoff instructions.
- The escrow agent receives your cash to close and any lender funds, then disburses according to the contract.
- Deed and mortgage are recorded with the Kanawha County Clerk, usually the same day or soon after.
- The seller receives proceeds and the title company issues final title policies.
Typical timing in Charleston
- Conventional loan: 30–45 days is common.
- FHA or VA: often 30–60 days due to underwriting and program steps.
- Cash purchase: as fast as 7–14 days if title is clear.
Earnest money basics
Your earnest money shows good faith and is held by the agreed escrow agent. In Charleston, this is often a title company or a closing attorney’s trust account. If a brokerage accepts your funds, they must follow state rules and your contract instructions.
- Accepted forms: certified funds, wire transfers, cashier’s checks, or sometimes personal checks. Ask the escrow holder what they require.
- Wire safety: Always verify wire instructions by phone using a known, trusted number for the title company or attorney. Never rely only on email for wiring information.
- Release rules: At closing, earnest money is applied toward your purchase. If a deal falls apart, the contract controls how funds are released. In disputes, the escrow holder usually needs written instructions from both parties or a court decision.
Title work, title insurance, and county recording
- Title search: The title company or attorney examines public records for mortgages, liens, judgments, easements, and other issues that could affect ownership.
- Title insurance: Lenders normally require lender’s title insurance, and buyers can opt for owner’s title insurance for added protection.
- Recording: After funding, the deed and mortgage are recorded by the Kanawha County Clerk. Recording is typically the same day or shortly after.
If title shows unpaid liens or judgments, the escrow agent will require payoffs or curative documents before closing. This can extend the timeline, so address known issues early.
Taxes, insurance, and lender escrow accounts
Two pieces fit together at closing:
- Proration: Property taxes and other recurring items are prorated between buyer and seller based on the portion of the period each party owns the home.
- Lender escrow account: Many lenders collect monthly amounts for property taxes and homeowners insurance and then pay those bills for you.
At closing, your lender may collect an initial deposit to set up the escrow account and a small cushion. Federal rules require lenders to provide disclosures and perform annual analyses of your account. You can learn more about these consumer rules from the Consumer Financial Protection Bureau.
For statewide tax guidance and links to county contacts, visit the West Virginia State Tax Department. Your settlement statement will show how taxes are prorated and whether any bills are being paid at closing.
Charleston specifics to keep in mind
- Flood risk: Parts of the Charleston area are near waterways. Ask your agent or lender for a flood zone determination early. You can also check the FEMA Flood Map Service Center to review a property’s flood map status.
- HOA and condo needs: Lenders and buyers often request HOA documents and fee statements. Confirm any assessments or planned changes early to avoid delays.
- Municipal and utility liens: Unpaid city or utility balances can slow closing. The escrow agent will check for these as part of title work.
- Choosing a closing professional: You can review general escrow and closing standards from the National Association of Realtors and locate attorneys through the West Virginia State Bar directory.
- Wire fraud awareness: Call the title company or attorney using a trusted number before you wire any money. Do not use phone numbers from unexpected emails.
What to expect on signing day
- Bring a government ID and any required certified funds.
- For financed deals, you will review and sign your Closing Disclosure and loan documents.
- The seller signs the deed and documents to pay off existing liens.
- After funding, the escrow agent records documents with the county. You receive keys once recording and disbursement are confirmed.
Simple closing checklist
- Confirm who holds your earnest money and deadlines in the contract.
- Schedule inspections right away and keep track of contingency dates.
- If financing, respond quickly to lender requests and appraisal scheduling.
- Review the title commitment and ask about any exceptions or curative steps.
- Decide on owner’s title insurance and understand what it covers.
- Verify wire instructions by phone before sending funds.
- For sellers, request mortgage payoffs early and resolve known liens.
- Do a final walkthrough shortly before closing to confirm condition.
- Keep copies of your Closing Disclosure and settlement statement for records.
Plain-language flow of a Charleston closing
- Offer accepted → Earnest money deposited with the title company or attorney →
- Inspections and other contingencies completed → Lender processes loan and orders appraisal (if applicable) → Title search and title commitment issued →
- Contingencies cleared and title issues cured → Closing scheduled →
- Signing, funding, and recording with Kanawha County → Funds disbursed and sale complete.
How Mendy supports your escrow
You deserve a steady, friendly guide from contract to keys. You will get clear timelines, reminders for each milestone, and help coordinating with your title company, lender, and closing attorney. If you are buying or selling in Charleston or anywhere in southern West Virginia, you will have a calm plan, regular updates, and a smooth path to the finish line.
Ready to take the next step or get a quick read on your options? Connect with Mendy Harvey for patient, local guidance and helpful tools like instant valuations.
FAQs
What is escrow in a Charleston home purchase?
- Escrow is a neutral account and process managed by a title company or attorney that holds funds and instructions until contract conditions are met and your closing records at the county.
Who usually holds earnest money in Kanawha County?
- A title company or a real estate closing attorney typically holds earnest money in a trust account, as named in your purchase contract.
How long does a financed Charleston purchase take to close?
- Many conventional loans close in about 30–45 days, while FHA or VA loans can take 30–60 days depending on underwriting and appraisal timelines.
Do lenders require escrow accounts for taxes and insurance?
- Many lenders do; they collect part of taxes and insurance with your monthly payment and pay those bills for you, following consumer rules overseen by the Consumer Financial Protection Bureau.
How are property taxes handled at closing in Charleston?
- Taxes are prorated between buyer and seller based on the ownership period, and your settlement statement reflects any reimbursements or amounts paid through the West Virginia State Tax Department.
What if the title search finds a lien or judgment?
- The title company or attorney will require payoffs or curative documents before closing, which may extend the timeline until clear title is confirmed.
How can I check if a Charleston property is in a flood zone?
- Use the FEMA Flood Map Service Center to review the current flood map for the property and discuss insurance needs with your lender and insurer.
