Published August 19, 2026
How Escrow and Closing Work in Oregon vs. Washington (2026)
How does escrow and closing work in Oregon and Washington?
Oregon and Washington both close real estate transactions through a neutral escrow and title company — not an attorney, as some states require. Escrow holds the earnest money, documents, and funds, then closes once the deed records with the county and the title policy issues. The biggest differences between the two states show up at the finish line: Washington collects a Real Estate Excise Tax (REET) from the seller at closing and treats the recording date as the official closing, while Oregon has no statewide transfer tax and coordinates signing, funding, and recording a bit differently.
By Rick Sadle | August 19, 2026
Once your offer is accepted, a quiet, weeks-long process kicks off behind the scenes — and most buyers and sellers never get a clear picture of it until closing day is bearing down. Here's exactly how escrow works on both sides of the Columbia, and where Oregon and Washington part ways.
Escrow, in plain terms
Escrow is a neutral third party — a title and escrow company — that holds the money and paperwork and follows the written contract until every condition is met. They don't represent the buyer or the seller. They control the funds, the documents, the recording, and the final payout.
Both Oregon and Washington are escrow states, which means a title/escrow company handles your closing rather than a real estate attorney. In Washington, the escrow company is named as the Closing Agent right in the NWMLS purchase and sale agreement. In Oregon, escrow is opened under the OREF sale agreement once you have mutual acceptance.
The step-by-step timeline
From accepted offer to keys, a typical financed purchase in the Portland–Vancouver metro runs about 30 to 45 days, sometimes stretching to 60 depending on the loan. Here's the sequence:
- Mutual acceptance. Both parties have signed the agreement. The clock starts.
- Earnest money delivered. The buyer's deposit is typically due within 1 to 3 business days and goes straight into escrow's trust account — it is not the seller's money yet.
- Inspection period. In Oregon, this commonly runs 10 to 15 business days from mutual acceptance, though it's negotiable. Repairs or credits get negotiated here.
- Seller disclosures. Oregon sellers deliver Form OREF 007; Washington sellers deliver Form 17. The buyer has a defined window to review and, if needed, back out.
- Appraisal and loan underwriting. The lender orders the appraisal and works toward final loan approval. If the appraisal comes in low, that gets resolved during this stretch — something I cover in detail in what happens when your appraisal comes in low.
- Title search and preliminary title report. Escrow confirms the seller can convey clean title and clears any liens.
- Signing. Buyer and seller sign their closing documents, usually a few days before the closing date.
- Funding and recording. The lender wires loan funds, and the deed is sent to the county to be recorded.
Where Oregon and Washington differ at the finish line
The day-to-day process looks similar. The differences that matter show up at closing.
When you're officially "closed"
In Washington, closing is the date the deed records with the county. Escrow packages the documents and sends them to the county — recording often happens midday — and then disburses seller proceeds the same day or the next business day after recording. That's why possession and getting your keys in Washington usually hinge on confirmed recording, not just signing.
In Oregon, escrow is considered closed once required funds are in, the documents record, and the title policy issues. Practically, signing, funding, and recording are coordinated closely, and your escrow officer will tell you the exact recording target.
Transfer tax at closing
This is the big one for your bottom line. Washington collects a Real Estate Excise Tax (REET) from the seller at closing, filed with an excise tax affidavit before the deed can record. REET is graduated by price tier — 1.10% up to 3.00% at the state level — plus a 0.50% local rate in Vancouver (Clark County). It comes out of the seller's proceeds on the settlement statement.
Oregon has no statewide transfer tax. The lone exception is a grandfathered 0.10% fee in Washington County (Beaverton, Tigard, Hillsboro). So a Portland-area seller in Multnomah or Clackamas County simply doesn't have this line item. If you want the full side-by-side, I break the numbers down in Portland vs. Vancouver property taxes.
Who pays for what
Customary — but always negotiable — practice in both states:
- Owner's title insurance policy: customarily paid by the seller in both Oregon and Washington.
- Lender's title policy: paid by the buyer as part of loan closing costs.
- Escrow fee: commonly split between buyer and seller.
- Recording fees: paid by the party recording the document (buyer for the deed and mortgage, typically).
Because these are customs, not laws, they can shift with your contract and local market conditions. In a buyer's market like this one, sellers are sometimes covering more of the buyer's side to close the deal.
What this means for you
For buyers, the practical takeaway is that your keys follow recording, not signing — build a day or two of cushion into your move plans, especially in Washington. For sellers, know your net before you sign: in Washington, REET can be a five-figure line item, and it's deducted at closing, not billed later.
This is exactly the kind of walk-through I give every client before we open escrow, so there are no surprises on closing day.
Frequently Asked Questions
Do I need a lawyer to close on a house in Oregon or Washington?
No. Both Oregon and Washington are escrow states, meaning a licensed title and escrow company handles the closing. An attorney is optional, not required, though you can hire one for complex situations.
Who chooses the escrow and title company?
It's negotiable and named in your purchase agreement — in Washington, the Closing Agent is written into the NWMLS form. Often the parties agree on a company, and your agent will usually recommend one they trust to keep the file moving.
When do I actually get the keys?
Possession typically follows recording, not signing. In Washington especially, that means keys change hands once the county confirms the deed recorded and funds disburse — often the same day or the next business day.
How much is the excise tax when I sell in Vancouver, Washington?
Washington's REET is graduated from 1.10% up to 3.00% by price tier, plus a 0.50% local rate in Clark County, and the seller pays it at closing. Oregon has no statewide transfer tax, so a Portland-side seller generally won't see this charge.
How long does closing take from accepted offer?
Plan on roughly 30 to 45 days for a financed purchase in the Portland–Vancouver metro, sometimes up to 60. Cash purchases can close faster once inspections and title work are complete.
Escrow doesn't have to be a black box. If you know the sequence and the handful of ways Oregon and Washington differ, closing day is smooth instead of stressful. If you're getting ready to buy or sell on either side of the river, I'm happy to walk you through your specific timeline and net. Reach out anytime.
This article is general information, not legal or tax advice. I'm a real estate broker, not an attorney or a CPA — confirm REET, title, and closing-cost specifics with your escrow officer and, for tax questions, your own advisor before you close.
About Rick Sadle
Rick Sadle is the Principal Broker and CEO of The Sadle Home Selling Team at Keller Williams Realty Professionals, serving the Portland, Oregon and Vancouver, Washington real estate markets. With more than 20 years of real estate experience, over 3,500 homes sold and more than $1 billion in team sales volume, Rick is one of the Portland area's most experienced real estate professionals. He is also a weekly real estate expert on KXL 101 FM, where he discusses the Portland and Vancouver housing markets, mortgage rates, housing trends and the economy. Rick is an Oregon-licensed Principal Broker and Washington-licensed Broker.
Sources
- Washington DOR — Real Estate Excise Tax rates and affidavit: dor.wa.gov
- Oregon LTIC — Title & Escrow Overview (PDF): oregon.ltic.com
- NWMLS Form 21 Residential Purchase & Sale Agreement: nwmls.com
- Oregon Real Estate Agency: oregon.gov/rea
- Washington County, OR transfer tax (0.10%): washingtoncountyor.gov
- Clark County, WA Auditor recording: clark.wa.gov
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