Escrow vs. Title: What's the Difference and Why Do You Need Both?

September 20, 2025

When you think about real estate transactions, chances are these two words are among the first things that come to mind. These are key parts of the process, to the point that the words themselves are familiar to most people, including first-timers. With that said, there's a lot to say about each of these terms, and you need to know all of it if you plan to get involved in a real estate transaction, either as a buyer, a seller, or if you're starting your career as a realtor.

Escrow vs. Title: What's the Difference

What Is Escrow? In relation to the real estate process, an escrow account holds all the funds, from the earnest money to the closing costs. Escrow refers to the agreement in which a neutral third party oversees the account, keeping track of all the money that makes its way to the account as buyers and sellers move forward with the transaction. Escrow companies and agents usually fulfill the role of the neutral third party, so they're also responsible for ensuring that all the money is redistributed properly according to the terms in the contract.

What Is Title? Title represents a person's ownership rights over a real estate property. Many of the terms you need to complete before closing are meant to validate these rights. Through title searches and the appropriate insurance policy, buyers can protect themselves against liens and ownership disputes, ensuring that their status as owners won't be put into question after the property transfer.

To summarise, title and escrow are different parts of the real estate transaction, but they're fundamentally entwined, which is why it's easy to mistake where one ends and the other begins.

Without escrow, there's no way to complete the closing because it allows us to verify that all the documents are properly signed and that all the requirements are met. You need escrow to complete the title transfer and put it on record. In practice, it looks like this:

• After the buyer and the seller agree on the terms of the sale, they can create the escrow account, with the support of a title company or a real estate attorney.


• This third party manages the escrow account while keeping track of all the finances along the way, including mortgage loans, down payment, attorney fees, etc. When all the steps leading up to the closing are complete (property appraisal, title search, insurance, etc.), you can move along with the closing.


• The research on the title and all related records is part of the requirements mentioned above. This ensures that there are no liens or encumbrances on the title.


• The escrow agent drafts the closing documents in advance. During the closing date, the funds are transferred to the correct parties, buyers and sellers sign these documents, and the agent has them recorded at the local county office.

As you can see, there's some overlap between the steps since the schedule is usually tight to get everything done in a bit over a month. This is why it's so helpful to have one company managing both title and escrow. This way, you don't have to waste time coordinating with different agents; the company helps you streamline the process, integrating each step of the transaction without overlooking anything.

We Help You Complete Your Real Estate Transaction Without Delays

Do you have questions about any of the terms related to the escrow process? The specialists at Key Title & Escrow understand Florida escrow transactions inside and out, and we'll be happy to answer all your questions. Thanks to our experience in the field, we're also the best option to help you complete your transaction without a hitch, because we harness the best technology to optimize the process and take your specific needs into account.

Save yourself some stress and let us manage all the steps in your title and escrow process! We have what it takes to help you complete a successful closing in Florida!

You can always call (305) 235-4571 or toll-free at (800) 547-0006 if you want to keep your transaction on the right track. Another option to get in touch is via the contact form on this page. We have the most knowledgeable escrow experts on board, and they're ready to provide the assistance you need.