Feeling unsure about what happens after your offer is accepted? If the word escrow makes you nervous, you are not alone. Buying a home in California, especially in Sonoma County, comes with new steps, timelines, and terms. This guide breaks down how escrow works, who does what, and what you need to do at each stage to keep your purchase on track and your deposit protected. Let’s dive in.
What escrow means in California
Escrow is a neutral third party that holds funds and documents while everyone completes their responsibilities. The escrow officer coordinates the transfer of money and the recording of the deed once all conditions are met.
Here are the key players and roles:
- Buyer: completes loan requirements, orders inspections, reviews disclosures, removes contingencies, and brings funds to close.
- Seller: provides disclosures, signs required documents, handles agreed repairs, and resolves title issues.
- Buyer’s agent and seller’s agent: guide you through timelines, requests, and paperwork with escrow.
- Escrow officer: opens escrow, holds the deposit, requests payoffs, calculates prorations, coordinates signing, and disburses funds.
- Title company: researches the title, issues a preliminary title report, clears exceptions, and provides title insurance at closing.
- Lender: orders an appraisal, underwrites the loan, issues the final approval, and funds the mortgage at closing.
In California, “closing” often refers to signing and funding. The transfer of ownership is completed when the deed is recorded with the county recorder.
Typical escrow timeline in Sonoma County
Every contract is different, but many financed purchases close in about 30 to 45 days. Cash deals can close faster if contingencies are short. Your Residential Purchase Agreement sets your deadlines.
Day 0 to 3: Acceptance and opening escrow
- Your offer is accepted. Your agent arranges to open escrow right away.
- You receive escrow instructions and wiring guidelines. You submit your initial deposit by the contract deadline.
- Escrow provides your file number, an initial checklist, and a preliminary schedule of dates.
Week 1: Inspections and disclosures begin
- Order your general home inspection and, if applicable, pest, roof, chimney, septic, and well inspections.
- Review seller disclosures, including the Transfer Disclosure Statement and the Natural Hazard Disclosure.
- Your lender collects documents and orders the appraisal.
- Title issues a preliminary report that lists easements, liens, and other items to review.
Weeks 2 to 3: Contingency review
- Continue inspections and review reports. Request repairs or credits if needed.
- Track loan and appraisal progress with your lender.
- Work with escrow and title to resolve any title exceptions.
Weeks 3 to 5: Loan approval and closing prep
- Your lender issues final conditions and then a clear to close.
- You sign closing documents. For financed purchases, you sign loan documents.
- You wire final funds to escrow based on your settlement statement.
Closing: Recording and keys
- Escrow records the deed and any loan documents with the Sonoma County Recorder.
- Funds are disbursed to the seller and other payees.
- You receive confirmation of recording, final statements, and your title insurance policy.
Sonoma County factors to know
- Wildfire risk and insurance: Many areas sit in higher fire severity zones. Shop for homeowners insurance early and verify underwriting requirements before removing contingencies.
- Septic and wells: Rural properties often use private systems. Plan septic inspections and well tests early and review county records.
- Permits and unpermitted work: For older or unincorporated homes, verify permit history through county departments.
- HOA and city requirements: If the property is in a city or HOA, request documents promptly and check any city-level transfer taxes or requirements.
- Recording timelines: Processing times can vary. eRecording may speed up recording when available.
Your contingencies explained
Contingencies give you time to verify the property, loan, and title. You can cancel or renegotiate within these windows under the contract terms.
Inspection contingency
This gives you time to hire inspectors and review findings. In Sonoma County, common inspections include general home, pest, roof, chimney, septic, and well. You can accept the property, negotiate repairs or credits, or cancel within your deadline.
Loan contingency
If you are financing, this protects you if your lender cannot approve or fund your loan by the deadline. Respond quickly to lender requests to keep this protection intact.
Appraisal contingency
Your lender orders an appraisal. If the value is below the purchase price, you can renegotiate, bring more cash, or cancel if your contingency remains in place.
Title contingency
You will receive a preliminary title report. Use this time to review easements, liens, or other exceptions and require the seller to clear appropriate items.
HOA/condo document contingency
For properties with an HOA, you get a set period to review CC&Rs, budgets, rules, and meeting minutes. If terms are not acceptable, you can cancel within the timeframe.
Sale of buyer’s home contingency
If you need to sell your current home to buy, your offer may include this contingency. It can extend timelines and may be less competitive, but it is helpful for financing.
Earnest money: how it works
Your earnest money deposit shows good faith and is held by escrow. The amount and due date are in your contract. Funds are typically paid by wire or check according to escrow’s instructions.
- Refunds: If you cancel within a valid contingency period, your deposit is generally refundable under the contract.
- After contingency removal: If you cancel after removing contingencies, the seller may be entitled to the deposit. Escrow will not release funds unless both parties agree or a legal order directs release.
- Wire safety: Wire fraud is a real risk. Always confirm wiring instructions by calling your escrow officer at a known phone number before sending any funds.
What to do in your first 10 days
- Deliver your deposit on time per your contract.
- Schedule inspections immediately. For rural homes, order septic and well inspections right away.
- Start homeowners insurance quotes early and confirm insurability.
- Gather lender documents in advance: tax returns, pay stubs, bank statements.
- Review seller disclosures and the preliminary title report as soon as you receive them.
- Track your contingency deadlines. Request extensions in writing before a deadline if needed.
Common delays and how to avoid them
- Loan underwriting: Get fully pre-approved and respond quickly to any requests.
- Low appraisal: Share strong comparable sales and discuss options with your agent and lender early.
- Title issues: Start title work immediately. Sellers should order payoff statements and address known liens early.
- Rural property findings: Failing septic systems, well output issues, or unpermitted work can delay closing. Order specialized inspections early and review county records.
- HOA documents: Ask the seller to request the HOA package promptly and follow up with the management company.
- Recording: Verify recorder processing times and ensure documents are complete to avoid rejection.
What you will sign and receive
You will encounter a number of documents during escrow. Here are the most common and what they mean in plain language:
- Purchase Agreement: Your contract with the seller that sets price, timelines, and contingencies.
- Escrow instructions: Directions to escrow on how to handle funds and documents.
- Earnest money receipt: Proof your deposit was received.
- Seller disclosures: Forms that describe known property conditions and risks, including natural hazards and, for older homes, lead-based paint.
- Preliminary title report: A summary of who owns the property and what affects title, like liens or easements.
- Inspection reports: Written findings from licensed inspectors across systems like structure, pest, septic, and well.
- Appraisal: An opinion of value prepared for your lender.
- Closing Disclosure and loan package: Your loan terms and closing costs if you are financing.
- Settlement statement and title policy: Your final accounting at closing and your title insurance policy after recording.
Closing day: what to expect
On closing day, you will have signed your documents, your lender will fund the loan, and escrow will confirm receipt of your final funds. Escrow then records the deed and any loan documents with the county. Once recording is confirmed, the home is yours. You receive final statements and your title policy shortly after.
Your local guide to a smooth closing
Buying in Sonoma County comes with unique details, from rural systems to wildfire considerations. With clear steps and steady communication between you, your agent, your lender, and escrow, you can move from offer to keys with confidence. If you want local experience and a calm, process-driven approach on your side, we are here to help.
Ready to talk through your plan or a specific property? Connect with Westgate Real Estate for guidance tailored to Sonoma County buyers.
FAQs
What is escrow in California home buying?
- Escrow is a neutral third party that holds funds and documents and coordinates closing once all contract conditions are met.
How long does escrow take in Sonoma County?
- Many financed purchases close in 30 to 45 days, while cash deals can close faster depending on contingencies and processing.
When do I pay my earnest money deposit?
- You typically submit your deposit to escrow within a few days of acceptance, following the timeline in your purchase agreement.
How do contingencies protect my deposit?
- If you cancel within a valid contingency period under the contract, your deposit is generally refundable through escrow.
What inspections are common for rural Sonoma County homes?
- Septic and well inspections are common, along with general home, pest, roof, and chimney evaluations.
What happens on recording day in Sonoma County?
- Escrow records the deed and any loan documents with the county, then disburses funds and confirms you are the new owner.