Find out what escrow means in Texas and how it works.
Texas requires buyers and sellers to use an escrow service during a property transaction in the state.
Much like California, Arizona, and Washington, Texas is also an escrow state. The Texas Department of Insurance requires escrow procedures to provide financial protection to consumers during real estate transactions.
The escrow fees in Texas depend on the value of the property in question and which company you use to handle the escrow. Texas escrow fees are paid to the title and escrow company itself and are usually somewhere around $350.00.
Escrow in Texas usually takes between 30 and 45 days on average. The exact length of escrow is agreed upon between the buyer and seller and then settled once the terms of the sale are met.
There are a few steps you need to take if you’re interested in becoming an escrow agent in Texas. Unlike other states, you do not need to take an exam to become a Texas escrow agent. You do need to pass a fingerprint background check, though, and fill out an application with the Texas Department of Insurance.
Only people who are residents of Texas or an adjacent state can become an escrow agent in Texas. Anyone who fits those two requirements can become a Texas escrow agent provided they pass a background check and submit a successful application.
A person can only perform escrow services in Texas when they are licensed by the Texas Department of Insurance. Most people can apply to become an escrow officer but can only conduct business after receiving a state license.