The Escrow Process in Nashville
If you're under contract on a Nashville home — buying or selling — someone has probably mentioned "escrow" and you may have nodded along without being totally sure what it means. Here's what's happening behind the scenes, and what you need to do (which is usually less than you think).
What Is Escrow?
Escrow is the period between contract and closing. When someone says "we've opened escrow," it means a title company has started a file and taken on the job of coordinating all the moving parts — money, documents, lender instructions, and legal paperwork — so that ownership of the property can transfer cleanly from one party to the other.
In Tennessee, the buyer and seller each designate their title company when they sign the purchase agreement. It's not uncommon for the two parties to use different firms. When that happens, those firms coordinate with each other at closing. Using the same company can make communication easier, but it's not required.
What Does the Escrow Agent Do?
Quite a bit — and most of it runs in the background. Here's what a title/escrow company handles from contract to close:
- Collects personal information from both parties (Social Security numbers, birthdates, loan numbers)
- Determines how the buyer intends to hold title (joint tenancy, tenants in common, etc.)
- Runs a preliminary title search to confirm ownership and surface any liens or encumbrances
- Prepares required state documents, including the deed of trust
- Receives and processes the lender's closing instruction package
- Holds earnest money and other deposits
- Calculates prorations for property taxes, HOA dues, and HOA setup fees
- Issues the title insurance policy
What Does It Cost?
The title company we recommend — Rudy Title and Escrow — charges $550 for their escrow services. That fee does not include the cost of title insurance, which is a separate line item. For a full picture of what to expect, see our Nashville closing costs guide for buyers or our breakdown of seller closing costs.
How Long Does It Take?
Cash purchases can close in days if everything is in order. When a lender is involved, 30–45 days is the typical window. Your agent and lender will set the timeline at contract, and the title company works to that target date.
What Happens on Closing Day?
A day or two before closing, a preliminary closing statement goes out to all parties for review. On closing day itself, everyone signs — and there are a lot of documents. After signatures, the title agent records the deed with the county, distributes funds, and coordinates key transfer. If buyer and seller are using different firms, the two companies swap documents to complete the transaction.
Do I Have to Be There in Person?
In person is always the cleanest option — and if last-minute changes come up, being at the table makes them much easier to resolve. But if you can't be there, the title company has options:
- Mobile notary — the company sends someone to you (for a fee)
- Local coordination — they arrange signing through an attorney, title rep, or bank near you
- Mail-away closing — available for cash buyers and sellers; docs are sent overnight, you sign in front of a notary and return them
- Limited power of attorney — one spouse can sign for the other, or you can give limited signing authority to the title company itself. We use this frequently for sellers who need to travel before closing day. Seller signs the POA before they leave, we email the preliminary statement for review and approval, title signs on their behalf on closing day and wires the proceeds.
Do I Need a Lawyer?
In some markets (looking at you, Chicago and New York), an attorney review period is standard. In Tennessee, it's not — and in 22+ years and 500+ transactions, we can count attorney-reviewed deals on one hand. Most title companies in Nashville are owned by attorneys, so if questions come up, they're typically equipped to help.
That said, you absolutely have the right to request an attorney review period. If that's important to you, have your agent include it in the Special Stipulations section of the initial offer. It just needs to be in writing from the start.
📅 Closing Day Timing: A Few Things Worth Knowing
Avoid Fridays if you can — especially the last Friday of the month. Title companies are at peak volume and paperwork bottlenecks are common. Mondays can also be slow-starting. Tuesday, Wednesday, or Thursday closings tend to go smoothest.
If you're the buyer, aim for a mid-day closing. Morning closings sometimes happen before your lender's funds have arrived — which can create an awkward situation where sellers are reluctant to hand over keys. Late afternoon closings can push deed recording to the following business day.
If you're the seller, timing matters less. Your proceeds will be wired as soon as possible after closing — sometimes same day, often the next business day.
⚠️ Wire Fraud: This Matters!
Real estate transactions are a known target for wire fraud. The scheme works like this: criminals hack into email accounts and send fake wiring instructions that look exactly like the real thing — same formatting, similar email addresses, professional language. If you follow those instructions, the money is gone.
Before wiring any funds, look up the title company's phone number directly on their website — not from an email — and call to verify the routing and account numbers. Do this every time, even if the instructions look right.
Crawford Insider: Wiring instructions should never come from your agent. They come from the title company — and you verify them by phone before sending a cent.
One Last Thing on Choosing a Title Company
When your agent recommends a title company, there's usually a reason. Familiarity with how a firm works — their communication style, their turnaround times, how they handle last-minute issues — makes a difference when a transaction gets complicated. You're always free to choose your own, but if we're recommending someone, it's because we've seen them perform.
Frequently Asked Questions
Who opens escrow in a Nashville transaction?
Usually the agent or lender gets it started. As a buyer or seller, your main job in that step is providing the personal information the title company requests — they handle the rest.
Can the buyer and seller use different title companies?
Yes. This is fairly common in Nashville. When it happens, the two firms coordinate to swap documents and finalize the transaction. It adds a coordination step but doesn't typically cause problems.
How much does escrow cost in Nashville?
The title company we work with charges $550 for escrow services. Title insurance is a separate cost. Total closing costs vary by purchase price, loan type, and deal specifics.
What's the best day of the week to close?
Tuesday, Wednesday, or Thursday. Fridays — especially month-end Fridays — are the busiest days at title companies and the most prone to delays. Mondays can also be slow to get moving.
What if I can't be at closing in person?
There are several options: mobile notary, remote signing through a local attorney or title company, mail-away closing (for cash buyers and sellers), or a limited power of attorney. Talk to your agent and the title company about which makes sense for your situation.
When do sellers receive their proceeds?
Proceeds are wired as soon as possible after closing — sometimes the same day, often the following business day. Closing time doesn't affect this much for sellers; the money moves when the paperwork is complete and recorded.
Questions about buying or selling in Nashville?
We handle everything — contracts, negotiation, strategy — and James is in the field every day. No handoffs, no assistants.
Related Reading
- Nashville Homebuyer Closing Costs Guide
- What It Costs to Sell a Home in Nashville
- Writing an Offer in Nashville
- Our Buyer Process
- Nashville Home Selling Timeline
.png)
Stephanie Crawford is the broker/owner of Nesting Realty and a Nashville native who has been helping buyers and sellers across Middle Tennessee since 2003. She oversees contracts, negotiation, and strategy from her home office. Her husband James handles all showings and listing appointments in the field. Together they've closed 500+ transactions — and neither of them hands clients off to anyone else.
NestingInNashville.com | TREC 263372
