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Home » What Does COE Mean In Real Estate?

What Does COE Mean In Real Estate?

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COE or “close of escrow” means that both parties – buyer and seller – have fulfilled conditions in the homebuying contract and are ready to move the sale forward.

Close of escrow implies that all the closing documents and associated paperwork are signed, and the homebuyer is ready to move into their new home. 

COE might or might not be the final part of the home-buying process. That’s because the closing date might or might not be included in the close of escrow. 

The closing date marks when all transactions are officially completed, implying that the deed of the property is signed over to the buyer. 

If the deed of the property transfer has taken place, the close of escrow will mark the final step in the home buying and escrow closing process.

COE (Close of Escrow) Process Steps Explained

Once the purchasing party signs the purchase agreement, the COE process can begin. Here are the steps involved and explained:

Buyer Provides a Deposit

The first step is for the buyer to supply an earnest money deposit. This deposit is essential, as it shows the buyer is serious about purchasing the property. The deposit is usually 10% of the property’s total price.

Approve the Property Disclosures 

The property disclosure or seller’s disclosure is a legal document detailing the condition of the property and any defects the buyer should be aware of. The seller signs this document.

Home Inspections and Appraisals

The third step is for the buyer to conduct a home appraisal to finalize the loan terms. A home appraisal helps evaluate the price of the property and lenders won’t usually give a home loan for an undervalued property.

After the appraisal, the buyer can ask for a home inspection, where official inspectors come in and conduct a full inspection of the property. If they find any issues, the buyer can negotiate with the seller to either fix the issues or subtract them from the total price.

Escrow Documents Reviewal 

The fourth step is for both parties to review the official escrow documents. These include the transfer deed, bill of sale, the seller’s affidavit, signed mortgage deed, and other documents. 

One Last Look at the Property

Before the final step, buyers are advised to take one last look at the property or final walkthrough. The buyer gets the opportunity to determine if the house is in order and if any additional damages have emerged.

The final walkthrough ensures that the buyer gets what they agreed on with the seller.

Signing the Documents

The final step is a lengthy one where the buyer and seller sign the closing documents. These are your tax declarations, initial escrow settlement, deed of trust, etc. These documents are signed in front of the lender, closing agent, real estate agent, and any other legal representatives.

Once all documents are signed, the escrow agent presents the buyer with a deed of their new home.


That concludes this short guide on what close of escrow means. As you can see, the close of escrow means that both parties have signed all the necessary documents and have met all the conditions in the homebuying contract. It means they are one step closer to finalizing the homebuying process.


  • What Does Closing Escrow Mean?

Closing escrow or COE means that the buyer and seller have met all the conditions and have signed all the documents in the home-buying process. Thus, the escrow agent can move forward with the sale.

  • What Happens After Escrow Closes?

After the escrow closes, several things can occur. You might be given the keys to the property, obtain the title at a later date, or wait a few hours before you are officially the new owner of the house.

  •  How Long After Signing Loan Docs Does Escrow Close? 

The average time between signing the loan documents and the escrow close is typically five days.

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