Buying or selling in South Tampa and hearing the word “escrow” at every turn? You want to know where your deposit goes, who holds it, and when it gets released. Understanding escrow helps you protect your money, avoid delays, and close with confidence. In this guide, you will learn what escrow means in Florida, how title companies run closings in Hillsborough County, and what to expect from contract to keys. Let’s dive in.

Escrow basics in Florida

Escrow is a neutral holding arrangement. A third party holds funds and documents under written instructions until contract conditions are met. In Florida, title companies usually act as the escrow and closing agent.

In a title-company-driven closing, the title company opens the file, holds your earnest money and closing funds, orders title work, prepares settlement statements, coordinates recording, and disburses money once the deed is recorded. Their role is administrative and fiduciary, which means they follow the contract and written instructions, not either side’s preferences.

Who does what in a Florida closing

• Buyer: delivers earnest money, completes inspections, works with the lender, and brings final funds to close.
• Seller: provides disclosures, resolves title issues, and supplies payoff information.
• Title company: manages escrow, title search, settlement statements, recording, and disbursement.
• Lender: if applicable, underwrites the loan, orders appraisal and title work, issues loan documents and the Closing Disclosure.
• Real estate agents: guide timelines, coordinate documents, and keep the deal on track.

South Tampa timeline: contract to close

Florida closings follow the contract. Timelines vary by deal, but most South Tampa transactions move through common steps.

Earnest money deposit

After both sides sign, you typically have a short, contract-defined window to deliver your earnest money to the title company. Many local contracts use a few business days, but your contract controls. Once received, the title company opens escrow.

Inspection period and due diligence

Your inspection window is often limited, commonly 3 to 10 days in many deals. You schedule home inspections, review findings, and request repairs or credits per your contract. The title company does not release earnest money unless the contract allows or both sides agree in writing.

Financing and appraisal

If you are financing, your lender orders the appraisal and title work early. You will provide documents to underwriting. Loan approval or clear to close triggers final prep by the title company, including figures, prorations, and payoffs.

Closing Disclosure timing

For most mortgages, lenders must deliver your Closing Disclosure at least three business days before closing. This waiting period often sets the earliest date you can sign loan documents.

Final walk-through and signing

You complete a final walk-through within 24 to 48 hours of closing. On closing day, you sign purchase and loan documents at the title company and provide any remaining funds by wire or cashier’s check, per the title company’s instructions.

Recording and disbursement

After signing, the title company records the deed with the Hillsborough County Clerk. Many companies e-record. Funds are disbursed once recording is confirmed, which includes paying off liens, issuing credits, and sending the seller’s net proceeds.

Typical time to close

Cash deals can close in about 7 to 21 days if title is clear and third parties cooperate. Financed purchases commonly take 30 to 45 days, depending on appraisal, underwriting, and association or insurance requirements.

How your money moves in escrow

The title company holds deposits and closing funds in a trust account, separate from operating funds. They apply your earnest money to the purchase price and reflect all credits, prorations, title premiums, and fees on your closing statement.

Common instructions that allow disbursement include mutual written direction from both parties, performance of the contract at closing, or a court order if there is a dispute. Title companies do not release funds without clear authority.

Inspections, repairs, and repair holdbacks

If repairs are needed, you and the seller can handle them in several ways:

• Seller completes repairs before closing, per contract.
• You receive a credit at closing, shown on the settlement statement.
• The title company holds a short-term repair escrow with clear written instructions and release timelines. Many title companies prefer to disburse at closing, so holdbacks must be specific and within policy.

Your earnest money is not automatically returned due to inspection findings. You must follow the contract to request termination or a release of funds.

When there is a deposit dispute

If buyer and seller disagree on who gets the earnest money, there are standard paths forward. The fastest is a mutual written release. If that is not possible, follow the dispute-resolution terms in your contract, such as mediation or arbitration. Title companies do not decide winners in a dispute; they may file an interpleader with the court and let a judge decide.

Local timing factors to watch

South Tampa and greater Hillsborough County have a few recurring items that affect closings:

• HOA or condo estoppel certificates can take days or longer. Request them early to avoid delays.
• Flood insurance is common near Tampa Bay. Lenders may need binders and extra documentation that can extend timelines.
• Payoffs and lien releases must be obtained and cleared before closing.

Buyer checklist: South Tampa

• Deliver earnest money by your contract deadline and confirm receipt in writing.
• Book inspections immediately and review reports within your inspection period.
• Start your loan application at once and respond quickly to underwriting requests.
• Watch for the Closing Disclosure at least three business days before closing.
• Verify wire instructions by phone using a known title company number.
• If buying in an HOA or condo, track the estoppel request and fees early.

Seller checklist: South Tampa

• Confirm the title company has opened escrow and received the buyer’s deposit.
• Provide mortgage payoff details and respond to title requests quickly.
• Prepare for HOA or condo estoppel fees and document requests.
• Negotiate any repairs promptly and agree to clear terms if a holdback is needed.
• Plan possession and key exchange for after recording and disbursement.

Fast-fail delays to avoid

• Slow HOA or condo estoppel turnaround.
• Flood or homeowners insurance delays near waterways.
• Appraisal issues or lender conditions.
• Unreleased liens or judgments uncovered by the title search.
• Wire fraud attempts, especially via email.

Safety tips for funds

• Always verify wiring instructions by calling the title company at a known number.
• Never rely on last-minute emailed changes to wiring details.
• Ask for a preliminary closing statement a few days early so you can see how deposits and credits are applied.
• Keep a simple deadline calendar for inspections, loan milestones, and your Closing Disclosure delivery date.

Who to call during escrow

• Title company or closing agent: deposit receipt, wiring, settlement questions, recording timeline.
• Your real estate agent: deadlines, negotiations, inspection strategy, and coordination.
• Your lender: appraisal, loan approval, Closing Disclosure timing.
• Hillsborough County Clerk and Comptroller: recording processes and confirmation via the title company.

One-minute roadmap

After the contract is signed, you deliver earnest money to the title company and escrow is opened. During your inspection window, you complete inspections while the title company runs the title search and requests any HOA or condo estoppels. If you are financing, your lender orders the appraisal and works toward loan approval. You receive your Closing Disclosure at least three business days before closing. On closing day, you sign documents, the title company records the deed, and funds are disbursed from escrow, including seller proceeds, payoffs, and any agreed credits. If a deposit dispute arises, money is released only with a written agreement or court direction.

Ready to move with confidence?

If you want a smooth, transparent path from contract to keys, our team is here to guide each step and keep your funds protected. For clear timelines, proactive coordination with your title company and lender, and a polished closing experience in South Tampa, connect with The Kat White Team. Request Your Home Valuation.

FAQs

What does escrow mean in Florida real estate?

• Escrow is a neutral holding arrangement where a title company holds funds and documents and releases them only when contract conditions are met.

Who holds earnest money in South Tampa closings?

• A title company commonly holds the buyer’s earnest money in a trust account and applies it to the purchase price at closing.

How long does a financed Florida closing take?

• Typical financed transactions close in about 30 to 45 days, depending on appraisal, underwriting, association documents, and insurance.

What is an HOA or condo estoppel certificate?

• It is an official statement from the association detailing fees, assessments, and account status, and it is often required before closing.

When do sellers get their proceeds in Hillsborough County?

• The title company disburses funds after documents are signed and the deed is recorded, which many companies complete through e-recording.