Terminology
REAL ESTATE
Survey
A survey is a professional measurement and mapping of a property’s boundaries and improvements, prepared by a licensed Washington State land surveyor. While surveys are not always required in Washington real estate transactions, they are highly recommended—especially for waterfront, rural, or large parcels. Surveys help identify property lines, easements, encroachments, access points, and shoreline boundaries. In some cases, surveys are necessary for new construction, boundary line adjustments, or resolving disputes.
Beach Access
Beach access in Washington State refers to the legal right to reach and use shoreline areas. Ownership and access can vary significantly depending on the body of water. Along Puget Sound, private ownership often extends to the mean low tide line, while the state typically owns tidelands beyond that unless they have been privately conveyed. Beach access may be deeded, shared via an easement, or public through parks or rights-of-way. Buyers should confirm whether beach access is private, shared, or public and understand any restrictions tied to tidelands or shoreline regulations.
Escrow
In real estate, escrow refers to a neutral third-party process that holds money, documents, and instructions on behalf of the buyer and seller while a transaction is being completed.
During a real estate transaction, an escrow company or escrow agent collects and securely holds items such as the buyer’s earnest money deposit, the purchase agreement, loan documents, and other required paperwork. The escrow agent follows the written instructions agreed upon by both parties and ensures that all conditions of the sale—such as inspections, financing, title review, and agreed repairs—are completed before the property officially transfers ownership.
Once all terms of the agreement have been satisfied, the escrow company disburses funds, records the deed with the county, and finalizes the closing, transferring ownership of the property from the seller to the buyer.
In Washington State, escrow companies play a critical role in coordinating with lenders, title companies, and real estate brokers to ensure that the transaction is handled accurately, securely, and in compliance with state regulations.
Pre-Approval
Pre-approval in real estate is a lender’s written estimate of how much a buyer may be able to borrow for a home purchase, based on a review of their financial information.
During the pre-approval process, a lender typically reviews the buyer’s credit score, income, employment history, debts, and assets. After evaluating this information, the lender provides a pre-approval letter that states the loan amount the buyer may qualify for, along with the type of loan and estimated terms.
A pre-approval helps buyers understand their price range and budget before beginning their home search. It also strengthens a buyer’s offer when purchasing a home, because it shows sellers that the buyer has already been financially reviewed by a lender and is more likely to secure financing.
In competitive markets like those often seen in Washington State, having a pre-approval letter is often an important first step before submitting an offer on a home.
Easement
An easement in Washington State is a legal right allowing someone to use a portion of another person’s property for a specific purpose, without owning it. Easements are typically recorded with the county and “run with the land,” meaning they remain in effect even when the property is sold. Common Washington easements include utility easements, access or ingress/egress easements, shared driveway easements, and shoreline or conservation easements. Easements can significantly affect property use and value and should always be reviewed in the title report.
Encroachment
An encroachment occurs when a structure or improvement—such as a fence, driveway, building, or retaining wall—extends onto a neighboring property or into an easement area. In Washington, encroachments can be discovered through a survey or lender-required inspection. Encroachments may require removal, legal agreements, or recorded boundary adjustments, depending on their severity. Unresolved encroachments can delay or jeopardize a real estate transaction and may affect title insurance coverage.
Title
In real estate, title refers to the legal ownership and rights to a property. Holding title means a person or entity has the lawful right to own, use, sell, or transfer the property.
A title is not a physical document but rather a concept of legal ownership supported by recorded documents such as deeds, easements, and public records that show the history of the property’s ownership, often called the chain of title. When a property is sold, the title is transferred from the seller to the buyer through a deed that is recorded with the county.
Before closing on a property, a title company conducts a title search to ensure there are no issues—such as liens, unpaid taxes, or ownership disputes—that could affect the buyer’s rights to the property. Buyers typically also purchase title insurance, which protects them and their lender from financial loss if a title defect or claim arises after the purchase.
In Washington State real estate transactions, title companies and escrow companies work closely together to verify clear ownership and ensure the title is properly transferred and recorded at closing.
Closing Costs
The various fees and expenses that buyers and sellers must pay to finalize the purchase and transfer of a property. These costs are paid at the closing of the transaction, when ownership officially transfers from the seller to the buyer.
Closing costs can include expenses such as loan origination fees, appraisal fees, title insurance, escrow fees, recording fees, prepaid property taxes, homeowners insurance, and lender-related charges. Some costs are typically paid by the buyer, while others may be paid by the seller, depending on the terms negotiated in the purchase agreement.
In Washington State, closing costs generally range from about 2% to 5% of the purchase price for buyers, though the exact amount varies depending on the loan type, property location, and specific services involved in the transaction. Understanding closing costs ahead of time helps both buyers and sellers prepare for the financial requirements of completing a real estate sale.
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