What Happens During Escrow and How Long Does It Take?
In California, escrow is the period between an accepted offer and the transfer of ownership, typically lasting 30 to 45 days for a financed purchase. A neutral third-party escrow company manages the exchange of funds and documents between the buyer and seller.
What Escrow Is
A neutral third party (the escrow company) holds all funds and documents, coordinates between the buyer, seller, and lenders, and ensures all terms of the purchase contract are fulfilled before transferring ownership.
Typical Timeline
Most financed purchases close in 30 to 45 days. Cash transactions may close in 7 to 21 days. The exact timeline depends on the loan type, lender processing, appraisal scheduling, and the complexity of the transaction.
Key Steps During Escrow
Opening escrow and depositing earnest money, completing inspections and reviews, obtaining lender appraisal, loan processing and underwriting, title search and insurance, final document preparation, and closing and recording.
What Can Affect the Timeline
Delays can occur due to appraisal issues, loan processing times, inspection repairs, title issues, or contingencies. Working with an experienced agent helps anticipate and navigate these potential delays.
What Buyers Do During Escrow
Complete inspections, secure homeowner's insurance, respond to lender requests for documentation, review title reports, and prepare for closing.
What Sellers Do During Escrow
Complete required disclosures, provide access for inspections and appraisals, negotiate any repair requests, and prepare closing documents.
Important note: Escrow timelines vary by transaction. Discuss expected timelines with your agent and lender based on your specific situation.
Helpful Resources
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Understanding the escrow process helps you prepare for a smooth closing. Contact me to discuss what to expect in your transaction.
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