Buying a house in America: no notary, but an escrow — and three days to read everything

Q: Who handles the purchase if there is no notary?

The American purchase revolves around the closing , the moment of transfer. It is organised by a settlement agent : usually a title company or escrow company (a firm that holds the money in trust), in some states a closing attorney . That party: collects the money from buyer and bank; has the seller sign the deed ; pays everyone out according to the purchase contract; records the documents with the county . The title company investigates the ownership history of the house beforehand. The customary title insurance , an insurance on the ownership, covers what that search misses. It sounds like the notary cut into pieces, and that's what it actually is. The difference: none of those parties is your adviser. Whoever wants to be sure brings their own real-estate attorney. In a number of states that's the norm anyway. One right you have to know and use. The Closing Disclosure , the full overview of your loan and all costs, must by law be with you at least three business days before the closing . If you get it later, the closing should move. Those three days are for reading and comparing with the earlier Loan Estimate, the lender's first cost overview. Sign nothing where you don't understand an item.

Q: What does buying a house in America cost on top of the price?

America has no national transfer tax. What you pay in closing costs differs per state and adds up to a few percent of the purchase price. It covers: loan costs; title search and insurance; recording; in some states and counties a transfer tax. The good news: that's exactly what the Closing Disclosure is for, so you know it in black and white before you sign. And check your visa status and tax liability . Buying as a foreigner is allowed almost everywhere, but the tax consequences differ from those of an American.

Q: What do I pay every year after that?

The annual property tax goes to the county and local authorities. It differs hugely per place: from less than half a percent to well over two percent of the assessed value. The American system does make paying it easy. With a mortgage the tax (and your home insurance) usually runs in your monthly payment via an escrow account . The bank saves it up for you and pays the assessment. With a concrete house always ask for the current property tax. Next to the mortgage it's the biggest housing cost, and it's reassessed along with the market. How the first months go from there, you read in your first weeks in America .

America has no notary as the Netherlands does: the purchase runs via a settlement agent — a title company or closing attorney — who holds the money, has the deed signed and records the documents with the county. By law you receive the Closing Disclosure at least three business days before the closing. After that your property taxes often simply run in your monthly payment, via your bank's escrow account.

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Written and checked by Auke on 26 September 2026, against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.

Yes, as a foreigner you can buy a house almost anywhere in America, but without a notary. What you need to know up front:

A settlement agent handles the transfer. That is a title company (a firm that checks and insures the ownership) or a closing attorney (a lawyer for the transfer).
That party holds the money, has the deed (the title document) signed and records the documents with the county, the level of government between the town and the state.
There is no national transfer tax. The closing costs, the extra costs of the purchase, add up to a few per cent of the purchase price and differ per state.
The find is a right. The Closing Disclosure with all the costs must legally be with you at least three business days before closing.
The pitfall: none of the parties at the table is your adviser.

The closing costs include loan costs, title search and insurance, recording and in some states a transfer tax.

In your first year you don't buy. You rent, you get to know your state and city, and only then do you decide — why that order is fixed. This article is for the moment you've got that far. And then you have to forget one thing: everything you know about notaries.

Who handles the purchase if there is no notary?

The American purchase revolves around the closing, the moment of transfer. It is organised by a settlement agent: usually a title company or escrow company (a firm that holds the money in trust), in some states a closing attorney. That party:

collects the money from buyer and bank;
has the seller sign the deed;
pays everyone out according to the purchase contract;
records the documents with the county.

The title company investigates the ownership history of the house beforehand. The customary title insurance, an insurance on the ownership, covers what that search misses.

It sounds like the notary cut into pieces, and that's what it actually is. The difference: none of those parties is your adviser. Whoever wants to be sure brings their own real-estate attorney. In a number of states that's the norm anyway.

One right you have to know and use. The Closing Disclosure, the full overview of your loan and all costs, must by law be with you at least three business days before the closing. If you get it later, the closing should move. Those three days are for reading and comparing with the earlier Loan Estimate, the lender's first cost overview. Sign nothing where you don't understand an item.

What does buying a house in America cost on top of the price?

America has no national transfer tax. What you pay in closing costs differs per state and adds up to a few percent of the purchase price. It covers:

loan costs;
title search and insurance;
recording;
in some states and counties a transfer tax.

The good news: that's exactly what the Closing Disclosure is for, so you know it in black and white before you sign. And check your visa status and tax liability. Buying as a foreigner is allowed almost everywhere, but the tax consequences differ from those of an American.

What deadlines run during the purchase?

Two statutory documents, each with its own clock, and both for you. The Loan Estimate reaches you within three business days of the lender receiving your application. It is not an approval, but the overview of the terms the lender expects to offer. The Closing Disclosure comes at the end, at least three business days before the closing. Put the two side by side: items that have grown without explanation are exactly what those three days exist for.

Document or moment	Deadline	What it does for you
Loan Estimate	within 3 business days of the lender receiving your mortgage application	shows the terms the lender expects to offer; not yet an approval
Closing Disclosure	at least 3 business days before the closing	all costs and loan terms in black and white; received late means the closing should move
Closing	the agreed day	the deed is signed and recorded with the county; some documents are notarised
Selling as a foreign person (later)	withholding on the day of transfer	the buyer withholds 15% of the sale proceeds for the IRS, unless an exception applies

What do I pay every year after that?

The annual property tax goes to the county and local authorities. It differs hugely per place: from less than half a percent to well over two percent of the assessed value.

The American system does make paying it easy. With a mortgage the tax (and your home insurance) usually runs in your monthly payment via an escrow account. The bank saves it up for you and pays the assessment.

With a concrete house always ask for the current property tax. Next to the mortgage it's the biggest housing cost, and it's reassessed along with the market. How the first months go from there, you read in your first weeks in America.

What happens when I sell again later?

If you sell US real estate while you are a foreign person for the IRS, the buyer must withhold 15% of the total amount realised and pay it to the IRS, the American tax authority. That rule is called FIRPTA. It is an advance, not a final bill: what is too much comes back through your tax return, but the money is gone for months.

There is an exception for buyers who will live there themselves:

if the proceeds are $300,000 or less, nothing is withheld;
between $300,000 and $1 million a reduced rate applies.

Put that exception on the table before the transfer, otherwise the buyer simply withholds. When you are no longer a foreign person for the IRS is the question in the article on tax liability.

In Vertrekklaar this is phase 5 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to America.

What this rests on

The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.

CFPB — what to expect at the mortgage closing (settlement agent, deed, recording with the county) — consumerfinance.gov
CFPB — the Closing Disclosure you must receive three business days before the closing — consumerfinance.gov
CFPB — the Loan Estimate, within three business days of your mortgage application — consumerfinance.gov
IRS — FIRPTA, the 15% withholding when a foreign person sells US real estate — irs.gov

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