What Happens During Escrow in California? A Week-by-Week Guide

Quick answer: Escrow in California is the period between an accepted offer and closing, often about 30 days for a financed purchase. Escrow is a neutral third party that holds the money and documents until every condition of the sale is met. During that time the buyer deposits earnest money, completes inspections and the appraisal, finishes the loan, and both sides sign closing documents. Then the deed records and the keys change hands.

Every sale is different, and your purchase contract sets the actual deadlines. Here's what a typical escrow looks like, week by week.

Day 1 to 3: Escrow Opens

• The accepted offer goes to the escrow company, and escrow is opened.
• The buyer deposits the earnest money (the good-faith deposit) within the time the contract allows, often a few days.
• The title company starts a preliminary title report, which shows liens, easements, and anything else recorded on the property.
• The seller starts on required disclosures.

Week 1: Inspections and Disclosures

• The buyer schedules a home inspection and any others they want, such as termite, roof, sewer line, or chimney.
• The seller delivers disclosures, often including the Transfer Disclosure Statement, a seller questionnaire, and a natural hazard disclosure report.
• The buyer reviews the preliminary title report and HOA documents, if there's an HOA.

Week 2: Requests for Repairs and the Appraisal

• After inspections, the buyer may ask for repairs or a credit. The seller can agree, counter, or decline.
• The lender orders the appraisal to confirm the home's value supports the loan.
• The buyer's lender keeps working through underwriting, collecting pay stubs, bank statements, and other documents.

Week 3: Removing Contingencies

• Contingencies are conditions that let the buyer cancel without losing the deposit, such as inspection, appraisal, and loan contingencies.
• As each is satisfied, the buyer removes the contingency in writing. After that, the deposit is more at risk if the buyer backs out.
• The buyer arranges homeowner's insurance, and the lender works toward final loan approval.

Week 4: Signing and Closing

• The buyer does a final walk-through to confirm the home's condition and that agreed repairs were done.
• Both sides sign closing documents with escrow, usually with a notary.
• The buyer wires the remaining funds, and the lender funds the loan.
• The deed records with the Ventura County Recorder. The sale is complete, and the keys change hands.

Common Hiccups (and How to Avoid Them)

• Low appraisal. Plan ahead with your agent about how you'd handle a gap.
• Loan delays. Buyers: answer lender requests quickly and don't open new credit during escrow.
• Repair disagreements. Clear communication and reasonable credits usually solve these.
• Wire fraud. Always confirm wiring instructions by phone with your escrow officer, using a number you already know. Never trust emailed changes to wiring details.

Frequently Asked Questions

How long is escrow in California?
It's set by the purchase contract. Financed purchases often take around 30 days. Cash purchases can close faster.

Who chooses the escrow company?
It's negotiated and written into the purchase agreement.

Can a buyer back out during escrow?
Usually, while contingencies are still in place and within the contract's terms. After removing contingencies, backing out can put the deposit at risk.

When does the seller get paid?
After the loan funds and the deed records. Escrow then sends the seller's proceeds.

Related Articles

• California First-Time Homebuyer Guide
• Buy First or Sell First in Simi Valley?
• What Your Monthly Mortgage Payment Looks Like in Ventura County

Questions About Your Escrow?

We walk every client through each step of escrow, so nothing catches you off guard. Call us at 805-424-6226 or get a free home value report if you're thinking about selling.

General information only. Your purchase contract controls the actual terms and deadlines.

Steve Hise and Tricia Garcia, Real Estate Toolbox at eXp Realty
Steve Hise CA DRE #01702055 | Tricia Garcia CA DRE #02032007