Reviewed by the Sky Escrow team, a California DFPI-licensed escrow company serving Los Angeles County.
Last updated: August 24, 2026
Escrow in California moves through roughly ten steps: opening escrow, depositing earnest money, signing instructions, reviewing title, clearing contingencies, finalizing loan documents, a final walk-through, signing and funding, recording with the county, and disbursement. The full process typically takes 30 to 60 days, though timelines shift with financing type and negotiated contingencies.
The California Escrow Process, Step by Step
-
1. Escrow Is Opened
Once both parties sign the purchase agreement, escrow officially opens — usually within one to three business days. The buyer’s deposit check or wire and a copy of the signed contract go to the escrow company, which opens a file and begins ordering the preliminary title report.
-
2. Earnest Money Deposit Is Submitted
The buyer sends the earnest money deposit — commonly 1–3% of the purchase price in Southern California, though this is negotiable — directly to the escrow company, never to the seller or either agent.
-
3. Escrow Instructions Are Prepared and Signed
The escrow officer drafts instructions reflecting the purchase agreement’s terms — price, contingencies, closing date, who pays which fees. Both parties review and sign these; they become the operating document the escrow holder follows for the rest of the transaction. escrow instructions
-
4. Preliminary Title Report Is Reviewed
A title company searches public records and issues a preliminary title report showing the property’s ownership history, liens, and any recorded restrictions. Buyers and their agents review this closely before contingencies are removed.
-
5. Contingency Period
This is usually the longest stretch of escrow. The buyer completes inspections, the lender orders an appraisal, and loan underwriting proceeds. Each contingency is removed in writing as it’s satisfied. contingency period
-
6. Loan Documents Are Finalized
Once underwriting clears, the lender sends final loan documents to escrow. The buyer reviews and signs these, along with the deed and closing statement.
-
7. Final Walk-Through
Typically within 24–48 hours of closing, the buyer does a final walk-through to confirm the property’s condition matches expectations and any agreed repairs were completed.
-
8. Signing and Funding
Both parties sign closing documents (often on different days), and the buyer’s lender wires loan funds into escrow. Escrow confirms all funds have been received and cleared before moving to recording.
-
9. Recording With the County
The escrow company sends the deed and related documents to the county recorder's office. Once recorded, ownership has officially and legally transferred to the buyer.
-
10. Escrow Closes and Funds Are Disbursed
After recording is confirmed, escrow disburses funds — payoff to the seller’s existing lender, proceeds to the seller, commissions to agents — and the transaction is complete.
How Long Does Each Step Take?
| Step | Typical Timing |
|---|---|
| Opening escrow | 1–3 business days after acceptance |
| Contingency period | 17–21 days (negotiable) |
| Loan underwriting | 2–4 weeks, financed deals |
| Signing to funding | 2–5 business days |
| Recording to disbursement | Same day to 1 business day |
What Makes California’s Escrow Process Different
Unlike attorney-closing states, California relies on licensed escrow companies — regulated by the DFPI — to manage the entire closing process rather than an attorney overseeing a single closing meeting. This means the escrow officer, not an attorney, prepares and coordinates nearly every document in the transaction.
Protecting Yourself During Escrow
Wire fraud targeting real estate closings has become common enough that verifying wire instructions by phone — using a number you look up independently, not one from an email — is now standard advice from title and escrow companies nationwide.
Frequently Asked Questions
How long does escrow take in California?
Most escrows close in 30 to 60 days, depending on financing and how quickly contingencies are cleared.
Who pays escrow fees?
This is typically negotiated between buyer and seller and varies by county custom.
What happens if escrow falls through?
Depending on which contingencies are still open and who caused the delay, the earnest money deposit may be returned to the buyer, kept by the seller, or split — this depends on the purchase agreement’s specific terms.
Can I choose my own escrow company?
In California, the buyer generally has the right to select the escrow company.
Start Your Escrow With a Licensed Los Angeles Company
Sky Escrow, Inc. handles residential, commercial, refinance, and specialty escrow transactions throughout the Los Angeles area under DFPI licensing.
Sky Escrow, Inc.
15760 Ventura Blvd, Suite 1050, Encino, CA 91436
(818) 712-0000 | info@skyescrow.com
Licensed by the California Department of Financial Protection and Innovation (DFPI). License No. 96DBO-214073. License status: Active.
This article is for general informational purposes and is not legal, financial, or tax advice.