Buying or selling in Denver and wondering what actually happens between “under contract” and “keys in hand”? You are not alone. The escrow process can feel opaque the first time, especially if you are relocating or buying in Cory‑Merrill. This guide breaks down each step in plain English so you know who does what, when it happens, and how to keep things on track. Let’s dive in.
What escrow means in Colorado
In Colorado, the title company usually serves as the neutral escrow agent. They hold your earnest money in a trust account, coordinate title work, prepare the settlement figures, and handle signing, recording, and fund disbursement.
Your signed contract sets the deadlines. Many Denver closings finish in about 30 days, though 21 to 45 days is common based on financing, inspections, and HOA timing for condos. Always follow the dates in your executed contract, since those control the process.
The escrow timeline in Denver
Day 0: Contract accepted
You and the seller sign the Colorado REALTORS contract. This locks in key dates such as earnest money due, inspection deadlines, loan dates, and the closing day.
Days 0 to 3: Earnest money
You deliver the earnest money to the title company’s trust account, or another account named in the contract. The title or escrow agent issues a receipt. This deposit is credited to you at closing or disbursed per the contract if the deal does not close.
Days 1 to 5: Loan and inspections
If you are financing, apply for your mortgage right away. Your lender will start underwriting and will order an appraisal when your file is ready. At the same time, you schedule a general home inspection and any specialized checks you need, such as sewer scope, radon, or roof.
Days 5 to 10: Inspection negotiations
By your inspection objection deadline, you can request repairs, credits, or cancel based on the contract terms. The seller may agree, counter, or ask you to proceed. Keep communication prompt so you do not miss deadlines.
Days 7 to 14: Appraisal completed
An appraiser visits the property and delivers a report to the lender. The lender reviews the value and eligibility. If value comes in lower than the contract price, your next steps follow the contract’s appraisal contingency.
Days 7 to 21: Title commitment issued
The title company completes a title search and issues a title commitment. It lists recorded items like liens, easements, or covenants, plus any requirements that must be cleared to close, such as mortgage payoffs or releases. For condos, the HOA issues a resale statement that confirms dues and any assessments. That HOA step can take a week or more.
As underwriting progresses: Conditions and clear to close
Your lender issues conditions as they review your file. Once conditions are satisfied, the lender gives a final approval known as clear to close. The title company and lender coordinate final figures for signing.
At least 3 business days before closing: Closing Disclosure
Your lender delivers the Closing Disclosure no later than 3 business days before the scheduled consummation. Review it carefully and ask questions early so there is no last‑minute rush.
1 to 3 days before closing: Final walk‑through
You and your agent do a quick walk‑through to confirm the property is in the expected condition and any agreed repairs are complete.
Closing day: Sign, fund, and record
You sign loan documents and the settlement statement, and the seller signs the deed and payoff authorizations. You wire your funds for down payment and closing costs. The title company records the deed with Denver County, disburses funds, and you receive keys per the agreement.
Who does what
- Buyer: Orders inspections, applies for the loan, reviews the Closing Disclosure, brings funds, and attends the walk‑through.
- Seller: Provides disclosures and access, negotiates repairs, signs the deed, and covers agreed seller costs and payoffs.
- Buyer’s agent: Manages the timeline, coordinates inspections, and keeps lender and title aligned.
- Listing broker: Coordinates seller documents, access, and any repairs or credits.
- Lender: Reviews your file, orders and reviews the appraisal, issues conditions, provides the Closing Disclosure, and clears the loan to close.
- Title/escrow: Holds earnest money, completes the title search and commitment, prepares the settlement, coordinates signing, recording, and disbursement.
- HOA (if applicable): Provides the resale certificate or estoppel that confirms dues and assessments.
Denver and Cory‑Merrill specifics
- Contracts and deadlines are date‑driven. Set reminders so nothing slips.
- HOAs can be a timing choke point for condos. In Denver, resale documents can take a week or more, depending on the management company.
- Appraisal schedules can tighten during busy seasons. Apply early so the lender can order the appraisal quickly.
- Electronic and remote closings are increasingly available in Colorado. Confirm availability with your lender and title company in advance.
- Denver County recording is typically same day or next business day based on timing. Funds are disbursed per the title company’s procedures after recording.
Common delays and how to avoid them
- HOA documents: Order the condo resale certificate early and verify fees and timelines.
- Appraisal bottlenecks: Get your loan application complete fast so the lender can order early.
- Title curatives: Ask the title company to start on any payoffs or lien releases right away.
- Inspection stalemates: Communicate and respond quickly so you do not need contract extensions.
- Closing Disclosure timing: Send your lender requested documents promptly to avoid last‑minute changes.
- Wiring issues: Confirm wire instructions by phone using the title company’s known number. Never rely solely on emailed instructions.
Your 30‑day closing checklist
- Contract ratified date and target closing date
- Earnest money due date and amount, plus receipt
- Inspection dates: general, sewer, radon, roof
- Inspection objection deadline and resolution deadline
- Loan application date and financing deadline
- Appraisal ordered date and expected return
- Title commitment expected date and title contact
- HOA estoppel requested and expected return date, if condo
- Closing Disclosure delivery date, at least 3 business days before closing
- Final walk‑through date
- Funds wiring deadline and the verified title company phone number
- Closing appointment time and location, or remote link
- What to bring: government ID, wire confirmation or cashier’s check if allowed, contact info for lender and title
Safety and funds: wire fraud basics
Wire fraud targets real estate closings. Before sending any money, call the title company at a number you already have to confirm instructions. Do not use phone numbers or links from unexpected emails. Verify again on closing day.
Key terms to know
- Earnest money: Your good‑faith deposit held in escrow and credited to you at closing.
- Escrow agent: The neutral third party, often the title company, that holds funds and documents until conditions are met.
- Title search and commitment: The title company’s report of liens, easements, and requirements to clear before closing.
- Title insurance: Policies that protect against covered title defects. Lenders require a lender’s policy. An owner’s policy is optional but strongly recommended.
- Inspection contingency: Your contractual right to inspect and object within set deadlines.
- Appraisal: A lender‑ordered valuation used for underwriting.
- Underwriting and clear to close: The lender’s review and final approval to fund.
- Closing Disclosure: The final cost and loan breakdown the lender must provide at least 3 business days before closing.
- Recording: Filing the deed and mortgage with the county recorder.
- HOA estoppel or resale certificate: The HOA’s statement of dues status and assessments, often required for condos.
Ready to close with confidence?
If you want a calm, well‑managed path from offer to keys in Cory‑Merrill or anywhere in Denver County, you deserve a local guide who sweats the details. From setting airtight deadlines to coordinating title, lender, and inspections, our team keeps your escrow on schedule. Have questions about your specific timeline or next steps? Reach out to Colin Whitenack to get a plan tailored to your transaction.
FAQs
How does earnest money work in Colorado home sales?
- You deposit earnest money with the named title or escrow holder within the contract’s deadline, it stays in a trust account, and it is credited to you at closing or disbursed per contract terms.
What is the typical Denver escrow timeline from contract to close?
- Many Denver transactions close in about 30 days, though 21 to 45 days is common depending on financing, inspections, appraisal, title work, and any HOA documents.
Who holds escrow funds and handles closing in Denver County?
- Title companies typically act as escrow agents, hold earnest money in trust, manage title work, prepare settlement figures, oversee signing, record the deed, and disburse funds.
What happens if the appraisal comes in low in Denver?
- Options may include price adjustments, buyer bringing additional cash, an appraisal reconsideration request through the lender, or following the appraisal contingency in the contract.
When will I receive the Closing Disclosure for my Colorado loan?
- Your lender must deliver the Closing Disclosure at least 3 business days before consummation, so review it quickly and ask questions early to avoid closing delays.
