The Scariest Things That Can Happen in Escrow (and How to Avoid Them)
Jennifer Davidson,
Owner | Office Manager | Senior Escrow Officer
Every escrow officer has a story that starts with "and then, two days before closing..." In honor of Halloween week, here are the moments that make agents' hearts stop — and the fix for each one.
A buyer receives what looks like legitimate wire instructions — except they're from a scammer who intercepted the email chain. The fix: never send or receive wire instructions by email alone. Always verify by phone, using a number you already know, not one provided in the email.
The number everyone was counting on doesn't show up. The fix: get ahead of it immediately with a reconsideration of value backed by fresh comparable sales, rather than waiting to see who blinks first.
A lien, an old easement, or an unresolved ownership question surfaces during title review — sometimes decades old. The fix: order the title search early, not at the last possible moment, so there's time to actually resolve what turns up.
Communication stops. Documents go unsigned. No one knows why. The fix: build in regular check-ins from day one, so a sudden silence gets noticed and addressed within days, not weeks.
An earnest money deposit was supposed to be wired, but somehow never was — and nobody confirmed it until it mattered. The fix: confirm receipt of the deposit directly with escrow, in writing, rather than assuming it happened.
A significant issue was buried on page 14 of the inspection report, and nobody caught it until after contingencies expired. The fix: review the full report together with your client, not just the summary page, before the contingency deadline.
None of these are actually about bad luck. Every one of them is preventable with the same two habits: verify instead of assume, and address issues the moment they appear instead of hoping they resolve themselves.
Wires, deposits, payoffs — confirm them directly, never by email alone.
The earlier a title issue surfaces, the more time there is to resolve it without pressure.
Summaries miss things. Go through the full inspection report with your client.
Silence is the first sign of most late-stage escrow problems.
Have comparable sales ready so you can respond immediately if the number comes back low.
About the Author
Jennifer Davidson, Sr. Escrow Officer and owner of Prosper Escrow, has spent nearly two decades mastering the art of escrow. Since beginning her career in 2006, her natural talent, attention to detail, and commitment to excellence have made her a trusted leader in residential sales, refinances, probate sales, short sales, mobile home transactions, and co-ops.
