Buying in Belleville and keep hearing the word “escrow” tossed around? You are not alone. Escrow, earnest money, title searches, and closing steps can feel like a lot when you are focused on finding the right home. This guide breaks it down in simple terms, with local context for Belleville and Wayne County, so you know what to do and when to do it. Let’s dive in.
Escrow basics in Michigan
Escrow is a neutral place where money and documents are held while your purchase moves forward. The escrow holder only releases funds and papers when the contract terms are met. This protects both you and the seller.
Who holds the escrow
In Michigan, a title company usually acts as the escrow or closing agent. Sometimes a settlement attorney or a real estate brokerage trust account is named instead. Your purchase agreement will say who holds the funds and how they are handled.
What escrow does for you
- Holds your earnest money deposit safely until closing or cancellation per the contract.
- Coordinates title work, closing statements, and disbursements.
- Follows written instructions in the purchase agreement and closing documents.
Earnest money in Belleville
Your earnest money deposit (often called EMD) shows good faith and ties your offer to the home while you clear inspections, financing, and title. The contract sets the amount, timeline, and who holds it.
Typical timing and amounts
- You usually deliver your deposit soon after offer acceptance. Many contracts call for 24 to 72 hours.
- Amounts vary by price and market. In many cases, buyers put down a few hundred dollars to a few thousand dollars, and around 1 to 3 percent in competitive situations.
- Michigan does not require a set amount by law. It is a negotiated term.
Release or forfeiture
Whether you get your deposit back depends on the contract. If you cancel because a written contingency is not met and you follow the contract, you usually recover your funds. If you breach after removing contingencies, the seller may keep the deposit or seek damages. The escrow holder follows the written instructions, and disputes are resolved per the contract or by the courts if needed.
Earnest money tips
- Confirm the exact escrow holder and deposit deadline in your contract.
- Get a receipt from the escrow holder for your records.
- Keep all contingency dates on your calendar and communicate in writing.
- Make sure the contract explains how and when funds are released if a dispute arises.
Title search and insurance
The title company searches public records to find liens, judgments, easements, and other items that affect the property. You will receive a title commitment that lists what needs to be cleared, such as a seller’s mortgage payoff or a municipal lien.
Title insurance protects you from covered title problems that existed before you closed. Most lenders require a lender’s policy. You should also consider purchasing an owner’s policy to protect your equity. In Michigan, a warranty deed is commonly used to transfer ownership.
Michigan closing timeline at a glance
Financed purchases in the Detroit metro, including Belleville, often take 30 to 45 days from acceptance to closing. Cash purchases can be faster if title is clear.
- Day 0: Offer accepted and contract signed. You deposit earnest money with the named escrow holder.
- Days 1 to 7: Title search begins. You schedule your home inspection.
- Days 7 to 14: Inspection contingency window. If you have a loan, the lender orders the appraisal.
- Days 14 to 30: Loan underwriting is in progress. Title commitment is issued. Seller gathers payoff statements and clears standard title items.
- Around Day 30: Your lender delivers the Closing Disclosure at least 3 business days before you sign.
- Closing day: You sign final documents, bring funds per escrow instructions, and the closing agent files the deed and mortgage with the Wayne County Register of Deeds.
- 1 to 10 days after closing: Your title insurance policies are issued and mailed. You receive recorded documents.
Caution: Always confirm wiring instructions by phone using a verified number you trust. Never rely on email instructions alone.
Local Belleville factors to check
Wayne County and local municipalities may have items that show up on title or need handling at closing. The title company and your agent will help you track these.
- Municipal or utility liens. Unpaid water, sewer, code enforcement, or special assessments can attach to the property and must be resolved before or at closing.
- Tax and parcel details. Confirm the correct parcel number and tax status early to avoid proration errors.
- Closing location and options. Many area closings happen at a title company office. Remote or mobile signings may be available. Ask what identification and funds format are required.
- Utility transfers and certificates. Some municipalities have final inspection or certificate steps for certain work. Confirm requirements before closing.
What to expect on closing day
You will sign final documents that transfer ownership and confirm your loan if you are financing. The seller signs the deed, and you sign your mortgage and note, along with affidavits and disclosures.
Bring your government ID and your closing funds in the form the escrow agent requires, usually a wire or a certified check. After signing, the lender funds your loan if applicable, the title or closing agent disburses the money according to the settlement statement, and the deed and mortgage are recorded with the Wayne County Register of Deeds.
Protect your funds and avoid wire fraud
Wire fraud is a real risk. Take these steps to keep your money safe:
- Call a known, verified phone number for the title company to confirm wiring instructions before sending funds.
- Do not rely on email-only instructions or last-minute changes.
- If a bank check is allowed, ask the escrow holder about timing and limits.
- Double-check account numbers and the exact name on the receiving account.
Your closing documents checklist
Here are the key documents you will likely see between contract and closing:
- Purchase agreement with escrow instructions
- Title commitment and, after closing, title insurance policies
- Inspection reports and agreed repair addendums
- Closing Disclosure if you are financing
- Deed, typically a warranty deed in Michigan
- Mortgage and promissory note if you have a loan
- Payoff statements, prorations for taxes and utilities, and affidavits
How we help you close with confidence
You deserve a smooth, clear path from offer to keys. With local know-how and a hands-on approach, our team helps you track dates, coordinate with title, and keep your deposit safe. If you are planning a move to or from Belleville or nearby communities, reach out to Darby Kolano for friendly, practical guidance.
FAQs
Who holds earnest money in Belleville transactions?
- The purchase agreement names the escrow holder, often a title company, settlement attorney, or a broker’s trust account. Confirm the holder in writing with your agent.
Can a seller keep my deposit if a contingency fails?
- If a written contingency is not met and you cancel as the contract allows, you typically recover your earnest money. If you breach after removing contingencies, the seller may be entitled to keep it. Contract terms control.
What is title insurance and do I need it as a buyer?
- Title insurance protects against covered title defects and unknown liens that existed before closing. Lenders require a lender’s policy, and buyers are encouraged to get an owner’s policy to protect their equity. It is a one-time premium at closing.
How are property taxes handled at closing in Wayne County?
- Taxes are prorated on the settlement statement based on the contract and local tax data. The closing agent calculates buyer and seller shares. Confirm any unusual assessments with local tax offices.
How should I send my closing funds safely?
- Use the escrow agent’s verified wiring instructions, confirmed by a phone call to a trusted number. If permitted, a certified bank check may be an option. Never act on email-only instructions.
How long does closing usually take in Belleville?
- Financed purchases commonly take 30 to 45 days. Cash closings can be 7 to 14 days if title is clear. Underwriting issues, title defects, or municipal liens can extend timelines.
What happens if the title search finds a problem?
- Title items are addressed before or at closing through payoffs, releases, payment of liens, or an escrow holdback. In some cases, you may need to renegotiate terms before moving forward.
