FAQ about the California Escrow Process

What are the main steps in a California escrow?

The escrow process in California includes several important stages designed to protect both buyers and sellers and ensure a successful real estate transaction. Here’s a clear overview:

Offer Acceptance: The escrow process officially begins once the seller accepts the buyer’s purchase offer.

Opening Escrow: A neutral third party—typically an escrow company—is appointed to manage the transaction and hold all funds and documents.

Earnest Money Deposit: The buyer deposits the initial earnest money into the escrow account as a sign of good faith.

Disclosures and Inspections: The seller provides required property disclosures, and the buyer arranges inspections to assess the property’s condition.

Repairs, Appraisal, and Negotiations: Any needed repairs are negotiated, and an appraisal is conducted to confirm the property’s value.

Mortgage and Financing: The buyer finalizes their loan application, provides financial documentation, and secures mortgage approval.

Title Search and Insurance: A title company conducts a title search to verify ownership, and title insurance is issued to protect against future claims.

Final Review and Walk-Through: The buyer performs a final inspection to confirm the property’s condition and readiness for transfer.

Closing and Transfer: The buyer and seller sign all required closing documents, funds are disbursed, and ownership is officially transferred.