If you're buying or selling a property in California, chances are you'll have to go through escrow. Escrow is a process where a third party holds onto the funds and documents related to a transaction until it's complete.
This can seem like a daunting process, but don't worry - we're here to help! In this blog post, we'll talk about how long escrow takes in California, what happens during each stage of the process, and some tips to make it as smooth as possible.
The length of time it takes to complete escrow can vary depending on a number of factors, such as the type of property being sold, how complex the transaction is, and how quickly the buyer and seller can agree on terms. In general, though, escrow in California typically lasts around 30-45 days.
How Long Does Escrow Take in California Table of Contents
How Long Does Escrow Take in California Table of Contents
What Are The Three Main Stages of the Escrow Process in California?
Escrow Process in California in a Nutshell
How Much Does Escrow Cost in California?
How Long Does Escrow Take in California Table of Contents
What Are The Three Main Stages of the Escrow Process in California?
Escrow Process in California in a Nutshell
How Much Does Escrow Cost in California?
Who Pays the Escrow Fees in California?
Who Picks the Escrow Company in California?
What Are The Three Main Stages of the Escrow Process in California?
There are three main stages of the escrow process: pre-escrow, escrow, and post-escrow.
What Happens in Pre-Escrow?
During pre-escrow, the buyer and seller will work with their respective agents to negotiate the terms of the sale and prepare for closing.
What Happens in Escrow?
Once both parties have agreed to the terms, the transaction moves into escrow. This is where the buyer will send their deposit, the title company will do a title search and prepare the title report, and both parties will work to close on the sale.
What Happens in Post-Escrow?
Once the sale is finalized, the post-escrow stage begins. This is where final payments are made, property deeds are transferred, and any remaining paperwork is completed.
Escrow Process in California in a Nutshell
- The length of time it takes to complete escrow can vary depending on a number of factors
- In general, though, escrow in California typically lasts around 30-45 days
- There are three main stages of the escrow process: pre-escrow, escrow, and post-escrow
- During pre-escrow, the buyer and seller will work with their respective agents to negotiate the terms of the sale and prepare for closing
- Once both parties have agreed to the terms, the transaction moves into escrow
- This is where the buyer will send their deposit, the title company will do a title search and prepare the title report, and both parties will work to close on the sale
- Once the sale is finalized, the post-escrow stage begins
- This is where final payments are made, property deeds are transferred, and any remaining paperwork is completed
What is a Home Appraisal?
When both the seller and the buyer have entered into escrow, the new mortgage lender will arrange for a mortgage appraisal on the property.
This is so they can accurately determine how much the house if worth on the market, ensuring the new buyer isn't dramatically overpaying for the property.
This happens a lot when someone finds the house of their dreams and just want to buy it!
From the mortgage lenders' point of view, they want to avoid providing the buyer with a home loan that is more than the price of the property...because that would be stupid.
How Much Does Escrow Cost in California?
Now you know how long escrow takes in California you're probably wondering how much Escrow costs in California, right?
Escrow agents in California usually charge 0.2% of the property price, plus $250 in administration & transaction fees from both the buyer and the seller, $500 in total.
So let's run through a quick example of how much escrow costs in California:
The property price is $1,000,000.
The total escrow fee would be $2,250 per side - $4,500 in total.
$2,250 from the buyer
$2,250 from the seller
Who Pays the Escrow Fees in California?
Usually both the buyer and seller of a property share the escrow fees when trying to exchange on a property.
But, ultimately it is up to both parties to negotiate and decide how the fees will be split.
Who Picks the Escrow Company in California?
In most property escrow transactions in California, the seller picks the escrow company they would like to use. The buyer does need to agree, but the seller takes the lead with the choice.
Oh and if you need help deciding on the best mortgage for your new home in California, make sure you check out our Ultimate Guide to Home Mortgages.
And...if you know someone planning on buying a new home in California, share this article with them and help them fly though the Cali escrow process.
