Thinking about buying a home in Robertson County or just across the border in Kentucky? Escrow can feel like the black box between contract and keys. You want to know where your money goes, who is holding it, and what could slow things down. In this guide, you’ll learn how escrow works in Tennessee and Kentucky, who typically holds the funds, common timelines, and how to avoid preventable delays. Let’s dive in.
Escrow basics
Escrow is a neutral holding arrangement for money and key documents in a real estate deal. It protects both sides by holding funds and paperwork until the contract’s conditions are met. When everything checks out, the escrow holder releases money and records documents.
You’ll see related terms during your transaction. “Title” refers to researching and insuring property ownership. “Closing” or “settlement” is the signing and disbursement event. In many deals, one company or attorney handles title, escrow, and closing together.
Who holds your funds: TN vs KY
The general rule is simple. A licensed, neutral party holds the funds under written instructions from your purchase contract or a separate escrow agreement. That party should provide a receipt and keep your money in a trust account.
Tennessee custom
In Tennessee, title or settlement companies commonly handle closings. They perform the title search, issue title insurance, and hold escrow funds for closing. Your purchase contract typically names this escrow or title company, and you should receive a deposit receipt and clear instructions.
Kentucky custom
In many Kentucky counties, real estate closings often involve an attorney. A closing attorney or law firm may prepare documents and hold funds in an attorney trust (escrow) account. Title companies also operate in Kentucky, and some closings proceed without direct attorney involvement depending on local practice and lender requirements.
Why it matters
The identity of the escrow holder affects where your earnest money is deposited and which rules apply. In Tennessee, you may work with a title company’s escrow account. In Kentucky, you may deposit with an attorney’s trust account or a title company. Local recording practices can also influence when funds are released after signing.
Key milestones and timelines
Every transaction is unique, but most follow a familiar path. Use these steps and windows to plan your move.
- Offer accepted and contract signed
- Earnest money deposited into escrow
- Inspection period, then negotiate repairs if needed
- Appraisal ordered by your lender (if financing)
- Title search and resolution of any title issues
- Loan underwriting to obtain clear to close
- Closing Disclosure or settlement statement delivered
- Signing appointment for closing
- Fund disbursement and deed recording
- Post-closing issuance of title policy and final accounting
Typical timing windows:
- Earnest money: within 1 to 5 business days after contract
- Inspection contingency: 5 to 14 days from contract
- Appraisal: usually completed within 7 to 21 days
- Underwriting to clear to close: 21 to 45 days for financed purchases
- Closing: often about 30 days from contract on financed deals; 15 to 30 days for cash; complex deals may take 45 to 60 days or more
Tennessee timing notes
Around Robertson County, many title companies are efficient with county recording. If your lender documents are ready and e‑recording is available, funding and recording can move quickly. Title work and title insurance issuance generally track national norms.
Kentucky timing notes
In counties where attorney-led closings are customary, scheduling can depend on attorney availability and courthouse workflows. Some rural counties process recordings more slowly, which can add a few days. If your lender requires local counsel, factor in extra coordination time.
Cross-border example timeline
Here is a sample for a Robertson County buyer closing on a Kentucky home:
- Day 0: Contract signed; earnest money deposited with the named escrow holder (title company or attorney)
- Days 1–10: Inspection period; negotiate repairs; lender orders appraisal
- Days 10–30: Underwriting, title search, and clearing any exceptions
- Days 30–45: Clear to close; Closing Disclosure issued; signing scheduled
- Day 45: Closing; funds wired; deed recorded in the Kentucky county; keys delivered
Many purchases finish in about 30 days. Always check your contract deadlines and lender estimates.
Clear to close and funding
“Clear to close” means your lender has finished underwriting and will fund once you sign. Title must be cleared, and for mortgage loans the Closing Disclosure must be delivered on time. At signing, you provide any remaining funds by wire or certified funds. After documents are signed and the deed is recorded, the escrow holder disburses funds to pay off liens, pay parties, and issue policies.
Always confirm wiring instructions directly with your escrow or title contact using a verified phone number. This reduces the risk of fraud.
Common delays and risks
A smooth escrow depends on strong communication. These are frequent slowdowns you can plan for:
- Financing issues: appraisal gaps, extra documentation, or last-minute underwriting conditions
- Title problems: liens, unrecorded deeds, boundary or survey questions, or judgments
- HOA or condo documents: delays in delivering required association materials
- Payoff matters: incorrect or outdated payoff amounts for the seller’s mortgage(s)
- Recording delays: county backlogs or limited e‑recording capabilities
- Wire fraud: fake wire instructions can cause loss and delay; always verify instructions by phone
How escrow disputes are handled
Most escrow agreements spell out the process if parties disagree. The escrow holder usually needs mutual instructions to release funds. If there is a dispute, the funds may be deposited with the court through an interpleader until the matter is resolved.
If an attorney holds escrow in Kentucky, state bar trust-account rules apply. Suspected misuse of funds should be reported to the proper regulatory authority.
Buyer and seller checklists
Use these quick questions to stay on track.
Before you deposit earnest money
- Who will hold the funds: a title company, attorney, or escrow firm?
- Which account will hold them: a trust account, not an operating account?
- How and when will you receive a written receipt and escrow instructions?
During escrow
- What are your contract deadlines for inspection, appraisal, financing, and closing?
- Who is your point of contact at the title company or attorney’s office?
- Does your lender require a specific title provider or local counsel, and is that provider licensed where the property sits?
Questions for your escrow or title contact
- When will the title search be complete, and when will you receive the report or exceptions?
- What are the exact wire instructions, and how will they be verified to prevent fraud?
- When will the deed be recorded, and when will funds be disbursed to the seller?
- What do you need to bring to closing, and what forms of payment are accepted?
Seller-focused questions
- When will payoff statements for mortgages and liens be ordered?
- How will taxes and prorations be calculated, and when will net proceeds be released?
- Are there any known judgments or municipal liens that must be cleared before closing?
Cross-border considerations (TN/KY)
- Where will the closing occur, and which state’s customs will guide the process?
- Which underwriter will issue the title policy, and is the policy appropriate for the property’s county?
- If you are using an out-of-area lender or agent, will local counsel or a local title company be required?
After closing
- Recording happens in the county where the property is located. In Tennessee, that is the Register of Deeds. In Kentucky, that is the county clerk’s office.
- Title insurance policies are issued after recording. Timing varies by provider.
- The seller’s liens are paid off from closing funds, and the seller receives net proceeds after costs.
- Ask for copies of the recorded deed and final settlement statement for your records.
Who to contact for guidance
For consumer protections, forms, and process details, you can consult:
- Consumer Financial Protection Bureau (CFPB) for closing disclosures and escrow guidance
- American Land Title Association (ALTA) for industry best practices
- Tennessee Real Estate Commission for licensing and consumer information
- Tennessee Department of Commerce and Insurance regarding title insurance oversight
- Kentucky Bar Association for attorney trust-account rules in attorney-led closings
- Robertson County Register of Deeds and the appropriate Kentucky county clerk’s office for recording rules and fees
If you have questions about local timelines or which provider to choose, work with experienced, licensed title companies or closing attorneys who regularly handle Robertson County and nearby Kentucky closings.
Buying across the Tennessee–Kentucky line does not have to be complicated. With clear escrow instructions, verified wire details, and a realistic timeline, you can move from contract to keys with confidence. If you want a steady guide through TN/KY customs and deadlines, reach out to our team. We support relocations, first-time buyers, and cross-border moves with practical, step-by-step help. Ready to plan your next move? Let’s talk with Kim Weyrauch.
FAQs
What is escrow in Tennessee real estate?
- Escrow is a neutral account that holds earnest money and key documents until contract conditions are met, then releases funds and records documents at closing.
Who holds earnest money in Kentucky closings?
- In many Kentucky counties, a closing attorney or law firm holds funds in an attorney trust account; title companies also handle escrow in some areas depending on local custom and lender rules.
How long does escrow take for a financed home in Robertson County?
- Many financed purchases close in about 30 days, with 21 to 45 days common for underwriting; complex deals may extend to 45 to 60 days or more.
What does “clear to close” mean for buyers?
- Your lender has finished underwriting, the title is cleared, and documents are ready; the loan can fund once you sign and required timing rules for disclosures are met.
How are funds released at closing in TN or KY?
- After you sign and the deed is recorded, the escrow holder disburses funds to payoffs, parties, and fees, then issues title policies post-recording.
How do I avoid wire fraud during closing?
- Always verify wire instructions by calling your escrow or title contact at a known phone number; never rely on email alone for payment details.
