Heard “we’re in escrow” and wondered what actually happens next? If you are buying in Santa Monica, the steps between offer and keys can feel fast and detailed all at once. You want a clear path, realistic timing, and no surprises. In this guide, you will learn how escrow works in California, the typical Westside timeline, costs to expect, and smart safeguards so you close with confidence. Let’s dive in.
What escrow means in California
Escrow is a neutral process where a licensed third party holds your funds and documents while everyone completes the contract terms. The escrow holder follows written instructions from both sides and coordinates with your lender and title company until the deed records and funds are disbursed. For a plain‑English overview, see Old Republic Title’s guide on understanding the escrow process.
Escrow is different from title insurance. Title companies search public records, identify liens or recorded interests, and issue policies that protect buyers and lenders against certain title defects. For a quick primer, review First American’s explainer on what title insurance covers.
California practices are shaped by standard forms from the California Association of REALTORS consumer resources and state rules. Required disclosures are set by law and summarized by the California Department of Real Estate’s disclosures guide. In Los Angeles County, recording of the deed happens with the Registrar‑Recorder/County Clerk, who manages the official property records.
Your Santa Monica escrow roadmap
Below is the typical buyer path on the Westside. Your exact dates will be in your signed contract, so always follow those.
Offer accepted and open escrow
- The buyer or seller opens escrow right after acceptance and sends the fully signed purchase agreement to the escrow company.
- You deliver your initial deposit within the timeframe stated in the contract. Escrow issues a receipt and opens your file with written escrow instructions.
Earnest money deposit norms
- Your deposit shows good faith and sits safely with escrow until closing or a valid cancellation.
- In Westside markets like Santa Monica, deposits are often material to your offer strength. A common range is 1 to 3 percent of the price, but higher numbers or layered deposits can appear in competitive situations. Exact amounts are negotiated.
Contingency periods and inspections
- Typical buyer contingencies include inspection, loan, appraisal, title review, and HOA review for condos.
- Common Westside windows, which are negotiable:
- Inspection and disclosure review: about 7 to 17 days
- Loan approval: about 17 to 21 days
- Close of escrow: often 30 to 45 days for financed purchases
- During inspections you may order general, pest, roof, and seismic evaluations. You can request repairs or credits before removing the inspection contingency.
Title, HOA documents, and disclosures
- Escrow orders a preliminary title report and requests any payoff statements for the seller’s loans or liens. You and your agent review the report and flag items that need clearance.
- The seller must deliver required disclosures, including the Natural Hazard Disclosure and other statutory forms. The DRE’s disclosures guide lists the common items.
- For Santa Monica condos, HOA packets are critical. Allow time for bylaws, CC&Rs, budgets, meeting minutes, insurance certificates, and any move/transfer fees. These packets can take several days to a couple of weeks.
Loan approval and final walkthrough
- Your lender issues final approval once underwriting conditions are satisfied and the appraisal is acceptable.
- Escrow prepares your final figures. You will review your closing disclosure for a loan and a closing statement.
- You complete a brief final walkthrough, usually within a few days of closing, to confirm the property is in the agreed condition.
Signing, funding, recording, and keys
- You sign loan papers and closing documents; the seller signs the deed and related forms.
- The lender wires funds to escrow. Escrow confirms funding, then coordinates recording with Los Angeles County.
- Once the deed records with the Los Angeles County Registrar‑Recorder/County Clerk, escrow disburses funds and you receive keys per the possession terms in your contract.
Local norms, costs, and timing in Santa Monica
- Market pace and deposits. In competitive Westside conditions, buyers often offer larger deposits and shorter contingency windows to stand out. Keep your lender, inspector, and insurance quotes lined up early.
- Escrow length. Many financed purchases close in 30 to 45 days. All‑cash purchases can be faster, sometimes 7 to 14 days, if title is clear and documents are ready.
- HOA dynamics. Santa Monica has a healthy condo mix, so HOA documents can drive your schedule. Ask the seller to order them right away and plan your review time.
- Fees to expect. Budget for appraisal, loan fees, owner’s and lender’s title insurance policies, escrow fees, recording and transfer fees, prorated property taxes, and any HOA transfer or move fees. The county maintains current recording procedures and fees. City transfer taxes vary by municipality in Los Angeles County, so verify what applies at the time of your offer.
Avoid common pitfalls
- Wire‑transfer safety. Real estate closings are a prime target for email fraud. Before you send any funds, call your escrow officer at a known phone number to confirm wiring instructions, and verify receipt after sending. The FBI’s advisory on business email compromise explains how these scams work and how to protect yourself.
- Late HOA packets. Missing or delayed HOA documents can stall your review period. Ask the seller side to order the packet immediately after acceptance and confirm expected delivery dates in writing.
- Title surprises. Old liens, judgments, or easements can delay recording. Review the preliminary title report early and direct escrow to clear items that must be satisfied before close.
- Appraisal gaps. If the appraisal comes in low, you can negotiate price, add funds, or rely on an appraisal contingency if you kept one. Plan ahead with your lender on what is feasible for you.
- Missed deadlines. Unremoved contingencies create friction. Use a shared calendar, confirm key dates by email, and coordinate with your agent, lender, and escrow.
How a local advisor helps
A Westside‑savvy advisor keeps your timeline tight and your risk low. You benefit from:
- Local norms and negotiation. Guidance on realistic deposit sizes, contingency lengths, and fee splits that fit Santa Monica conditions and your comfort level.
- Tight coordination. Fast scheduling for inspections, early HOA packet requests, and steady communication with your lender and escrow officer.
- Risk checks. Wire‑fraud protocols, early title review, and a heads‑up on local fees or assessments that affect your plan.
- Smooth logistics. Clear walkthrough timing, possession planning, and, if needed, cleanly drafted extension requests.
Quick buyer checklist
- Open escrow and send your initial deposit safely after confirming instructions by phone.
- Order general and specialized inspections right away; schedule pest and roof early.
- Confirm your lender’s appraisal order and loan timeline on day one.
- Review the preliminary title report and disclosures as soon as they arrive.
- For condos, track HOA packet delivery and set an internal review deadline.
- Keep a simple calendar of contingency removals and closing dates.
- Review final figures, sign, fund, and confirm recording with escrow.
When you want a calm, curated path from acceptance to keys in Santa Monica, you deserve a guide who blends market expertise with detailed execution. For a buyer plan tailored to your goals, connect with Molly Swing to map your timeline, documents, and deadlines with confidence.
FAQs
What does “escrow” mean in a California home purchase?
- Escrow is a neutral third party that holds funds and documents, follows written instructions from buyer and seller, and coordinates with title and your lender until the deed records and funds are disbursed.
How long does escrow take in Santa Monica?
- Many financed purchases close in about 30 to 45 days; all‑cash deals can be shorter, sometimes 7 to 14 days, if title is clear and everyone is ready.
When is my earnest money refundable?
- Your deposit is typically refundable if you cancel within valid contingency periods in your contract; after you remove contingencies, it is generally not refundable unless protected by specific terms.
Who picks the escrow company in Los Angeles County?
- Either side can propose an escrow holder; often the listing side suggests one, but both parties must agree and the company must be licensed and impartial.
How are escrow and title fees usually split?
- Splits vary by contract and local custom; in Los Angeles County buyers and sellers often share escrow fees, and title policy payments are assigned by custom or negotiated.
How long does the title search take after opening escrow?
- A preliminary title report typically arrives within a few days; clearing liens or other items can take longer depending on responses from lenders and third parties.
