Back to Basics: The Ten Steps Involved in the California Escrow Process

Back to Basics: The Ten Steps Involved in the California Escrow Process

Are you involved in the escrow process and curious to understand exactly what steps it takes? Here you will review ten steps in the typical escrow process in California. If you still have questions after reading it please contact Neighborhood Escrow at 310-378-2456.

  1. Opening Escrow and Title
  2. First, you will send your purchase agreement to the escrow agent you have chosen. This agreement should include the address and price of the property, how long escrow will be, names and contact information for buyers, sellers, and all involved agents, and the commission that will be paid to said agents.

  3. Preparing Disclosures
  4. If you have completed a Seller’s Disclosure packet then this will be done before you listed your home. Otherwise, this will involve a list of legally required forms disclosing a variety of elements of the home.

  5. Have the Pest Inspection
  6. If the home you’re buying is at all likely to have termites then this inspection will be necessary within seven days of the seller accepting an offer.

  7. Get an Escrow Package
  8. The escrow officer will send an escrow package within a week of escrow opening. It will have several documents for you to review and sign.

  9. The Buyer’s Get the Inspection
  10. Depending on a few factors, the buyers will get between 5 and 17 days to get their inspections done, including a third-party inspection, electrical and plumbing, pool and spa, roof, HVAC, and appraisal inspections.

  11. The Buyer Makes Request for Repairs
  12. After the inspection, the buyer can request repairs. As the seller, you are not required to make them. Your real estate agent will help you negotiate this area.

  13. The Contingency Will Be Removed
  14. Once you and the buyer have agreed about any repairs, the contingencies in their offer will be removed.

  15. The Buyer Does Their Final Walk-Through
  16. The buyer can do a final walkthrough within five days of the close of escrow. They can confirm that the property is in the same condition it was when they last saw it.

  17. Escrow is Closed
  18. Once the loan is funded and the grant deed has been recorded, you will get a final settlement statement from escrow with all your selling costs.

  19. The Buyer Takes Possession
  20. Once escrow is complete, you get your money and the buyer gets the keys to the property. In almost all cases, you will now have no responsibility for the property.

If you have additional questions about the escrow process we invite you to contact Neighborhood Escrow at 310-378-2456.

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