On this page you can find important details about escrow exams, common issues, and required forms. It’s available to help you prepare for your exam and avoid common mistakes. 

Escrow Questionnaire

All licensees must complete the Designated Escrow Officer Questionnaire before an examination.

Common Problems Found During Exams

Not receipting sufficient funds before disbursement RCW 18.44.400(3) & WAC 208-680E-011 (10)(a) & 14(c)

Charging unauthorized fees WAC 208-680D-040(3)

  • Check maintenance or post-closing fees
  • Reconveyance fees under certain conditions

Failing to perform duties in a timely manner WAC 208-680D-050

  • Old escrow accounts with balances
  • Failure to complete reconveyance on time
  • Unresolved month-end reconciliation adjustments

Failing to maintain required records WAC 208-680D-020(1)(a) & (b) and WAC 208-680E-011 (10)(b)

  • Missing wire confirmations
  • Missing imaged copies of canceled checks
  • Missing deposit records

FAQs

Must I disclose all fees to principal parties in escrow transactions?
Yes, WAC 208-640D-040(2) requires you to disclose all fees in writing using the same terminology as on the closing statement, including the dollar amount for each fee.

Can I disburse funds the same day a cashier’s check is received?
No, cashier’s checks are not considered "good funds" on the day received. You must wait until the next business day to disburse funds as per RCW 18.44.400(3).

What documentation is needed for remote deposit capture?
You must retain validated third-party confirmation of deposits (e.g., a bank-validated deposit slip), or the Designated Escrow Officer must sign the deposit slip.

When is a check considered stale under the Unclaimed Property Act?
Checks are considered stale after three years of issuance if the owner has not made contact with the bank or escrow company. You may not deduct fees for reissuing checks or remitting unclaimed property.

Can I offer a discounted closing fee through a real estate firm?
Yes, but only if the discount goes directly to the customer, and the real estate firm does not receive anything in return. Customers must still be informed they can choose a different settlement agent.