Buying a home in Chesterfield is exciting, but the word “escrow” can make the process feel mysterious. You want to know who holds your money, what happens after your offer is accepted, and how your closing actually gets over the finish line. This guide breaks it down in plain language so you can move forward with confidence and avoid surprises. You will learn the steps, the timeline, and the local details that affect closings in St. Louis County. Let’s dive in.
Escrow in Chesterfield: What It Means
Escrow is a neutral process that safely holds funds and documents between contract and closing. In Chesterfield and across St. Louis County, a title company or closing agent usually handles escrow instead of a standalone escrow company. Your earnest money is deposited and held per the contract, and the closing agent coordinates title work, settlement statements, and recording.
Missouri brokers may also hold earnest money in a trust account, following Missouri Real Estate Commission rules. Your contract will name who holds the funds and the deposit deadline. Always request a receipt for your deposit.
Who Does What in Escrow
- Buyer: deposits earnest money, hires inspectors, completes the loan process, secures homeowners insurance, reviews disclosures, and attends the final walk-through and signing.
- Buyer’s agent: delivers the contract and earnest money instructions, schedules inspections, and negotiates repairs or credits.
- Seller: provides disclosures, allows inspections, and completes agreed repairs or credits.
- Listing agent: coordinates acceptance and delivers documents to the title company.
- Title company/closing agent: opens escrow, holds earnest money, runs the title search, issues the title commitment, prepares settlement statements, coordinates signing, and records documents with the St. Louis County Recorder of Deeds.
- Lender: processes the loan, orders the appraisal, clears underwriting conditions, and issues the clear to close.
- Inspectors/appraiser/surveyor: provide reports during the contingency periods.
- St. Louis County Recorder of Deeds: records the deed and mortgage after closing.
Step-by-Step Timeline
1) Contract Acceptance (Day 0)
Your offer is signed by both parties. The contract sets the escrow holder, earnest money amount and deadline, inspection period, financing deadlines, and closing date.
- Next 0 to 2 business days: deposit earnest money per the contract and send the fully executed contract to the title company.
2) Open Escrow and Hold Earnest Money (Days 0–2)
There is no fixed rule for earnest money in Missouri. A common range in many markets is 1 to 2 percent of the purchase price, but this varies by price point and competition. The title company or a broker trust account will hold the funds as agreed.
3) Inspection and Disclosure Period (Commonly Days 1–7/10)
Schedule your general home inspection quickly, plus any pest, radon, or sewer line checks needed. Review seller disclosures and any HOA documents if the home is in an association. You can request repairs or credits, or cancel if your contingency allows and deadlines are met.
4) Loan Application and Appraisal (Days 1–30)
Submit your full loan application right after ratification if you are financing. The lender orders the appraisal, often with a 7 to 14 day turnaround. Underwriting may ask for added documents, which can extend timing if responses are slow.
5) Title Search and Commitment (Days 3–15)
The title company runs a title search and issues a title commitment that shows liens, easements, and items that must be cleared. Simple issues may be resolved in days, while complex cures can take longer.
6) Underwriting and Clear to Close (Commonly Days 14–45)
The lender issues your clear to close when all conditions are satisfied. By federal rule, you must receive your Closing Disclosure at least 3 business days before you sign, so this document starts the final countdown to closing.
7) Walk-Through and Closing Funds (24–72 Hours Before Close)
Do your final walk-through to confirm the home’s condition and agreed repairs. Confirm how to deliver your funds. Always verify wire instructions directly with the title company by phone to avoid fraud.
8) Closing Day and Recording (Closing Date)
You sign closing documents, pay your closing costs and down payment, and the title company sends the deed and mortgage for recording with the St. Louis County Recorder of Deeds. Keys and possession follow the contract terms. Recording may occur the same day or within a day or two, depending on timing.
9) After Recording (Days 1–10 Post-Close)
You receive recorded documents and your final title insurance policies. The title company disburses funds and pays off liens. Update your utilities, property tax mailing address, and HOA contacts if applicable.
Title, Recording, and Taxes
- Recorder of Deeds: St. Louis County records deeds and mortgages and maintains public records. Expect recording fees and to receive recorded copies from the title company after closing.
- Title insurance: the lender requires a lender’s policy. You can also purchase an owner’s policy to protect your equity. The title commitment lists exceptions to review.
- Property taxes: taxes are usually prorated at closing. The seller pays through the day of closing and you pay thereafter. Review tax prorations on your closing statement.
- Transfer taxes and fees: Missouri does not have a statewide real estate transfer tax. You should still expect recording fees and any local filing costs. Confirm current amounts with the title company.
- Surveys: many buyers seek a survey to confirm boundaries. Your lender or title policy may require a survey or a survey affidavit.
Contingencies and Inspections to Expect
- Home inspection contingency: commonly 7 to 10 days but fully negotiable.
- Financing contingency: protects you if your loan is not approved within the agreed timeline.
- Appraisal contingency: allows action if the appraised value does not support the contract price.
- Title contingency: gives time to review and cure title issues.
- HOA document review: if the home is in an HOA, plan for document review, transfer fees, and estoppel letters.
Common local inspection focus areas:
- Basements and moisture management, including sump pumps.
- Roof age and condition in older subdivisions.
- HVAC system age and performance.
- Radon testing is commonly recommended in the St. Louis region.
- Termite inspections; some lenders require treatment or clearance letters.
- Sewer line evaluation for older properties.
What It Costs to Close
Buyer costs typically include:
- Lender fees such as application, underwriting, appraisal, and credit report.
- Title insurance: lender’s policy required; owner’s policy optional but often recommended.
- Title company settlement fees, recording fees, and any local filing costs.
- Prorated property taxes and HOA dues based on the closing date.
- First-year homeowners insurance premium if collected at closing.
- Survey fees if ordered.
- Prepaid interest on your loan.
Seller costs typically include:
- Real estate commission per the listing agreement.
- Payoff of existing mortgages and liens.
- Any agreed repairs or closing credits.
- Deed preparation and any applicable fees.
Local custom varies on who pays the owner’s title policy and settlement fees. Your contract controls the final split.
Smart Local Tips
- Earnest money: your contract sets the amount and deadline. A common range in many markets is 1 to 2 percent of the purchase price. Deposit within 1 to 3 business days and get a receipt.
- Clear to close: this comes from your lender, not the title company. After you receive the Closing Disclosure, you must wait 3 business days before signing.
- Timelines: cash deals can close in 7 to 14 days if title is clear. Many financed purchases close in 30 to 45 days.
- Wire safety: call the title company using a known phone number before sending any wire. Do not rely only on email instructions.
- Title issues: review the title commitment. Most common items, like mortgage payoffs, are cured before closing.
- HOA documents: request HOA resale documents early. Transfer fees and estoppel letters can affect timing.
How The Lottmann Group Helps You Close Smoothly
You deserve a clear path from offer to keys. With boutique, owner-led service and deep West County expertise, our team coordinates each step with your lender and title company, explains documents in plain language, and keeps you on track for deadlines. We focus on the details that matter in Chesterfield closings, from earnest money logistics to title review and final walk-through preparation.
If you are relocating or moving up in the Chesterfield area, we bring responsive communication and a steady hand so you can focus on your move, not the paperwork. Ready to go from accepted offer to recorded deed with confidence? Schedule a market consultation with The Lottmann Group.
FAQs
Who holds earnest money in Chesterfield purchases?
- Usually the named title company or a broker’s trust account, as specified in your contract and governed by Missouri Real Estate Commission rules.
How much earnest money should I expect to deposit?
- There is no fixed rule; a common range in many markets is 1 to 2 percent of the price, but it can be higher in competitive situations and is negotiable.
What if my inspection finds major issues?
- You can request repairs or credits, or cancel if allowed by your inspection contingency and deadlines; put requests in writing.
Who orders the title search and pays for title insurance?
- The title company orders the search. The lender requires a lender’s policy; responsibility for the owner’s policy varies by local custom and negotiation.
When do I get the keys after closing in St. Louis County?
- Possession follows your contract terms, often at closing and recording; recording may occur the same day or within a day or two.
How long between clear to close and signing under TRID rules?
- You must receive your Closing Disclosure at least 3 business days before signing; many buyers sign a few days after clear to close.
How can I avoid wire fraud during closing?
- Always confirm wire instructions by calling the title company at a known number; never rely solely on email for payment details.
