Reviewed by the Sky Escrow team, a California DFPI-licensed escrow company serving Los Angeles County.
Last updated: August 25, 2026
To open escrow in California, the buyer’s agent (or the buyer directly) delivers the fully signed purchase agreement to a licensed escrow company, which opens a file, assigns an escrow number, and requests the earnest money deposit — usually within one to three business days of an accepted offer. From there, escrow orders title work and prepares instructions for everyone to sign.
What Happens the Moment Your Offer Is Accepted?
Once a buyer and seller both sign the purchase agreement, the contract itself becomes the instruction set that opening escrow puts into motion. Nothing is legally “in escrow” yet — that starts only when a neutral third party, the escrow holder, actually opens a file for the transaction.
In practice, this handoff happens fast. Most Southern California purchase contracts expect escrow to be opened within one to three business days of acceptance, so the earnest money and contingency clocks can start on schedule. Delays at this stage are usually simple: a missing signature page, an agent who hasn’t yet forwarded the contract, or contact information escrow still needs to reach the lender.
What Documents Do You Need to Open Escrow?
Opening a file quickly comes down to getting the right paperwork to the escrow officer up front. In most transactions, that means:
- The fully executed purchase agreement, including all counter-offers and addenda
- Contact information for the buyer, seller, both agents, and the buyer’s lender
- Preliminary loan approval or pre-qualification documentation, if the purchase is financed
- Vesting information — how the buyer intends to hold title (individually, jointly, in a trust, and so on)
Sellers on a resale should also expect a request for their current loan account number shortly after, so escrow can order a payoff or beneficiary statement from the existing lender.
How to Open Escrow: Step-by-Step
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1. Sign and deliver the fully executed purchase agreement
Both buyer and seller sign the purchase agreement (and any counter-offers or addenda). The buyer’s agent, or the buyer directly in an FSBO sale, forwards the complete, signed package to the chosen escrow company as the first step of opening the file.
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2. Select an escrow company
The purchase contract typically names or leaves blank the escrow holder. In California, the buyer generally has the right to choose which licensed escrow company handles the transaction, even when an agent recommends one.
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3. Submit the contract and contact information to escrow
The agent or buyer sends the signed agreement along with contact details for the buyer, seller, agents, and lender. This is what an escrow officer needs to open a file and start reaching out to everyone involved.
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4. Escrow opens the file and issues an escrow number
The escrow officer creates the file and assigns an escrow number, which becomes the reference for every document, deposit, and wire tied to the transaction from this point forward.
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5. Deposit the earnest money
Escrow sends deposit instructions, and the buyer wires or delivers the earnest money deposit within the timeframe set by the contract — commonly three business days after acceptance.
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6. Escrow orders the preliminary title report and payoff information
The escrow officer orders a preliminary title report from a title company and, on a resale, requests a payoff or beneficiary statement from the seller’s existing lender.
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7. Escrow prepares and distributes escrow instructions
Based on the purchase agreement, the escrow officer drafts instructions covering price, contingencies, closing date, and fee allocation. Buyer and seller review and sign these; once signed, escrow is officially open and moving.
Who Opens Escrow — the Buyer or the Seller?
Either side can initiate the process, but in most California residential transactions the buyer’s agent submits the signed contract and opens the file, since the buyer’s earnest money deposit is usually the first item escrow needs to collect. The purchase agreement can also name a specific escrow company the seller prefers, which the buyer then has the right to accept or request a change to.
Opening Escrow in California: What Local Buyers and Sellers Should Know
California requires escrow companies to be licensed by the Department of Financial Protection and Innovation (DFPI) under the California Escrow Law, which is why funds move through a regulated neutral party rather than directly between buyer and seller. California Escrow Law
Most Los Angeles-area contracts are written on the California Association of Realtors (C.A.R.) Residential Purchase Agreement, which sets the standard timeframes for opening escrow and delivering the deposit. standard opening-escrow timeframes Once escrow is open, the rest of the closing process — title review, contingency removal, loan funding, and recording with the county — follows its own separate timeline.
Frequently Asked Questions
How soon after an accepted offer must escrow be opened?
Most California purchase contracts expect escrow to open within one to three business days of acceptance, since the earnest money deposit deadline and contingency periods are usually counted from that point.
What do I need to provide to open escrow?
The fully signed purchase agreement (with any counter-offers or addenda), contact information for all parties and the lender, and — shortly after — the earnest money deposit.
Do I need an attorney to open escrow in California?
No. California uses licensed escrow companies rather than attorney closings, so a DFPI-licensed escrow officer, not an attorney, opens the file and coordinates the transaction.
Can escrow be opened before the purchase agreement is fully signed?
Not in the ordinary sense. An escrow officer can take an intake call and get ready, but a file isn’t formally opened, and an escrow number isn’t assigned, until the fully executed contract is in hand.
What if I want to change escrow companies after one has already been opened?
It’s possible earlier in the process, but it can add delay, since the new company has to re-request title work, deposit confirmation, and lender information from scratch. Raising a preference before the contract is signed avoids this.
Ready to Open Escrow?
Sky Escrow, Inc. opens residential, commercial, refinance, and specialty escrow files for buyers, sellers, and agents throughout the Los Angeles area under DFPI licensing. Open an Escrow
Sky Escrow, Inc.
15760 Ventura Blvd, Suite 1050, Encino, CA 91436
Phone: (818) 712-0000 / (888) 891-0002
Email: 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.