10 Ways to Avoid Escrow Headaches: Because No One Likes Last-Minute Surprises
Escrow should be the smooth final stretch of your real estate journey—not a stress-fueled disaster or a last-minute scramble to close. But let’s be real, things go sideways way too often thanks to missing documents, delayed wire transfers, or unexpected legal snags. The good news? A little planning goes a long way.
Want to avoid escrow headaches? Here’s how to keep things moving and close without chaos:
Plan ahead for wiring funds.
Escrow doesn’t take ACH transfers—only wires. Know your bank’s wiring process in advance (some require in-person authorization). One client had to drive two hours to their bank on closing day because they didn’t check this ahead of time—don’t be that person. Pro tip: Do a test run with a small amount so you’re not scrambling last minute.
Make sure everyone has valid ID.
Your driver’s license, passport, or other government-issued ID must be valid at the time of signing. An expired ID can delay closing, so check it before closing day—not at the signing table.
Traveling before closing? Give a heads-up.
If you or anyone signing the docs will be out of town, tell escrow ASAP. You might need a power of attorney or remote signing, and that takes time to set up.
HOA documents? Get them early.
If your property is in an HOA, request everything as soon as possible. HOA delays are one of the biggest escrow bottlenecks—and nothing kills momentum like waiting on some random HOA manager to send over a PDF.
Provide payoff info asap.
If there’s a mortgage or lien on the property, request the payoff statement early. Escrow can’t close without it, and trust me—lenders aren’t in a hurry to get this to you.
Handling an estate? Communicate early.
If the property is tied to an estate, let your agent and escrow team know upfront. Estate sales require extra paperwork, and last-minute surprises can cause major delays.
Just married? Check name changes.
If a buyer or seller has changed their name, make sure legal documents match exactly. Otherwise, you’ll be waiting while someone fixes the paperwork.
Selling on behalf of someone else? Verify legal authority. If you’re signing for a trust, estate, or another individual, get all legal documents in order well before closing. Finding out you need extra paperwork the week of closing is… not fun.
Probate in play? Start now.
If probate is involved, get moving asap. It’s a slow, complex process—waiting until the last minute will put your closing on ice. (Check here for a post a wrote about probate a while back.)
Double-check trust documents.
If a trust is involved, confirm the bank is named in the trust for loan payoff and escrow processing. Otherwise? Expect delays—and headaches.
The key to a smooth closing? Be proactive. Real estate deals don’t have to be stressful. The secret? Preparation and communication. Get ahead of these details early, and you’ll save yourself a world of stress.
Need help making sure your deal stays on track? Let’s talk—no drama, just solutions.
