Wait—What Is Escrow Again?

Tips

Jan 1

And while we’re at it, let’s talk about vesting too.

Escrow and Vesting
What They Are and Why They Matter

Buying a home comes with a whole new vocabulary—escrow, vesting, earnest money—and if your head is spinning a bit, you’re not alone. Let’s break down two of the most important (but often misunderstood) terms in the home buying journey: escrow and vesting.

What Is Escrow, Anyway?

Imagine you’re halfway between "offer accepted" and "keys in hand." That’s where escrow lives. It’s essentially a safe and neutral holding space for your transaction.

An independent third party—usually an escrow company—manages this phase. They hold onto critical pieces like your earnest money deposit and the property title, making sure everything is in order before the sale is finalized.

Why does this matter? Because it protects both sides. As a buyer, your money is secure and only released when all agreed-upon conditions are met. For the seller, there’s peace of mind knowing they’ll be paid as soon as those conditions are fulfilled.

During escrow, we’ll be right there with you, helping you stay on top of requirements, coordinating with the escrow officer, and making sure the process moves forward smoothly.

Understanding Vesting: How Ownership Is Held

Now let’s talk about vesting—how your name (or names) are officially recorded on the property title. Sounds simple, right? But the way you hold title has legal and financial implications, especially when more than one person is involved.

If you’re buying solo, vesting is straightforward—you’ll own the property in your name alone. But if you're purchasing with a partner, spouse, or friend, you’ll need to decide how ownership is shared and what happens if one of you passes away.

Here are the most common vesting options:

Joint Tenancy – This is popular with married couples. Both parties own the property equally, and if one person passes away, the other automatically inherits the full ownership.
Tenancy in Common – Each owner holds a defined share of the property. Shares can be equal or unequal and don’t automatically pass to the other owner upon death. Instead, they go to your heirs. This option can be helpful in blended families or more complex financial arrangements.
Tenancy by the Entirety – Available in Oregon and Washington for married couples, this works like joint tenancy but also adds extra protection from creditors. It can be a smart choice for safeguarding assets.

Choosing the right vesting option isn’t just a formality—it affects your legal rights, inheritance plans, and even future decisions about selling or refinancing the property. Don’t worry—you won’t have to figure this out on your own. Your escrow officer will explain your choices and help ensure you pick the one that fits your situation best.

Schedule a free consult

Let’s Make the Fine Print Feel Simple

Buying a home is about more than bedrooms and bathrooms—it’s about understanding the full picture, from escrow to how your name ends up on the title. We’re here to walk you through the process, answer your questions (even the ones you’re afraid to ask), and make sure you feel confident every step of the way. Ready to talk next steps? Call or text us at 503-951-8547 to get started.