Buying or selling a home in Los Angeles comes with lots of moving parts. One step that can feel mysterious is escrow. If you understand who does what, which deadlines matter, and how the timeline typically unfolds here, you can move from offer to keys with confidence. In this guide, you’ll learn the LA escrow essentials, a realistic timeline, and practical tips to keep things on track. Let’s dive in.
What escrow means in Los Angeles
Escrow is a neutral process that holds money and documents until both sides meet the terms of the purchase contract. If you want a quick primer on what escrow is, start with this plain‑English overview of what escrow is. In California, escrow companies must follow state rules on licensing, trust accounts, and recordkeeping.
In California, escrow activities are overseen by the state’s Department of Financial Protection and Innovation. This oversight helps protect your funds and ensure escrow follows the written instructions of buyer, seller, and lender.
Ownership is official when your deed is recorded with the Los Angeles County Registrar-Recorder. Recording times vary with volume and document type. Once the deed is recorded and funds are disbursed, you are on record as the new owner.
Who does what in escrow
Escrow officer
The escrow officer is your neutral hub. They open the file, hold deposits in a trust account, prepare settlement statements, coordinate signing, and handle the recording and final disbursements based on written instructions. They do not advocate for either side.
Title company
Title researches the property’s history for liens, easements, or defects, and issues title insurance at closing. Title also coordinates recording with escrow and works to clear any issues that appear before close.
Lender
Your lender orders the appraisal, underwrites the loan, and issues the final “clear to close.” Lender speed often sets the pace of a financed escrow. Federal rules also require a waiting period after you receive the Closing Disclosure.
Your real estate agent
Your agent keeps everyone aligned on dates and deliverables, negotiates repairs or credits, coordinates inspections and walkthroughs, and helps you understand your options at every decision point.
Buyer and seller roles
- Buyer: completes inspections, secures loan approval, wires down payment and closing funds, and signs all closing documents.
- Seller: provides disclosures, delivers payoff details for any liens, and signs the deed and closing documents.
HOA and county
If you are buying a condominium or a home in a planned community, the HOA supplies governing documents and financials that you review during escrow. The county records the deed and establishes the public record of your ownership.
Timeline you can expect
Every contract is negotiated, and timing depends on lender speed, HOA response times, and title clearing. In normal LA conditions, many financed purchases close in about 30 to 45 days. Ranges of 21 to 60 plus days are common. Cash deals can close in roughly 7 to 14 days when title is straightforward.
Day 0 to 3: Open escrow and deposit
Your offer is accepted and escrow opens. You deliver your earnest money as agreed in the contract, often within 1 to 3 business days. Escrow issues opening instructions, while title begins its search and requests any needed payoff information.
Days 1 to 14: Inspections and disclosures
You schedule inspections and review seller disclosures. If you want repairs or credits, build time to get bids and compare options. For condos, request HOA documents early, since turnaround and fees vary by building.
Days 7 to 21: Appraisal and underwriting
Your lender orders the appraisal and starts underwriting. Appraisal and underwriting often take 7 to 14 days or longer depending on complexity and appraiser availability. Promptly provide every document your lender requests to keep momentum.
Days 10 to 21: Contingency decisions
By the contracted dates, you either remove contingencies and proceed or cancel within your rights. If an issue appears in title, disclosures, or the appraisal, you and the seller can negotiate a fix, a credit, or a price change.
Days 21 to 35+: Clear to close and disclosures
Once underwriting conditions are met, the lender issues a clear to close. You will receive a Closing Disclosure at least three business days before your loan can be finalized. Escrow prepares your final settlement statement so you can review your numbers.
Signing, funding, recording
You sign final documents, the lender funds, and escrow submits the deed for recording. The Los Angeles County Registrar-Recorder completes recording, then escrow disburses funds and releases keys per the contract. Same‑day to several business days can be normal for recording, depending on workload.
Key contingencies to know
- Inspection contingency: Lets you investigate the property and request repairs or credits, or cancel within your rights if concerns are not resolved.
- Appraisal contingency: If the appraisal is below the price, you can renegotiate, bring extra cash, or cancel if the contingency is in place.
- Loan contingency: Protects you if the lender cannot approve your loan within the agreed time.
- Title contingency: Gives you time to review the title report and require issues to be fixed or insured.
- HOA and condo documents: Allows you to review rules, budget, and reserves before proceeding.
- Seller disclosures: California requires specific disclosures. You review them and decide how to proceed.
These timelines and protections are negotiated in your purchase agreement. Standard forms and practices in California help set expectations. For consumer guidance on forms and processes, visit the California Association of REALTORS.
Condo and HOA considerations
Condominium escrows usually include HOA document packages that can take days or weeks to arrive. Fees and timing vary by building, which can impact your schedule. If you are using VA or FHA financing, confirm the building’s approval status early or discuss alternate loan options with your lender.
Remote buyers: smooth options
Many LA escrows accommodate electronic signatures and, in some cases, remote online notarization. Availability varies by company and by document type, and some lenders still require wet signatures. Confirm your signing options with escrow and your lender on day one. If you are out of area, plan for trusted local inspections and decide who will attend the final walkthrough on your behalf.
Wire and funds safety
Wire fraud is a real risk. Title and escrow providers regularly educate clients about secure transfers. To protect yourself:
- Call your escrow officer at a verified phone number to confirm wiring instructions before you send a penny.
- Do not rely on phone numbers or links inside an email. Verify them independently.
- Use your escrow company’s secure portal if provided.
- Confirm the beneficiary name and account details match your written instructions.
For general education from a national title provider, see First American.
Typical costs you will see
Your Closing Disclosure will summarize final numbers. Common line items include: escrow fee, title insurance premiums, lender charges, appraisal fee, recording fees, prepaids for taxes and insurance, prorated property taxes and HOA dues, and any local transfer or documentary taxes. Escrow and title will provide estimates, then finalize amounts before funding.
Common speed bumps and fixes
- Title defects: Liens, judgments, or vesting issues are handled through payoffs, court documents, or specific title insurance solutions. If a defect cannot be resolved, you may be able to cancel under your title contingency.
- Appraisal shortfall: You can renegotiate price, bring extra funds, or cancel if your appraisal contingency is active.
- Loan delay: Submit lender documents quickly and keep communication frequent. If your loan needs more time, you may request an extension before removing the contingency.
- Seller disclosure or HOA delays: Ask for documents early and build in time to review. If delays push past agreed dates, your agent can negotiate timeline adjustments.
Quick checklist to start escrow strong
- Confirm who is opening escrow and get the team’s contact list.
- Verify your deposit amount and delivery deadline.
- Ask escrow and lender about remote signing and notarization needs.
- Send lender documents right away and request an underwriting timeline.
- Book inspections immediately and gather bids if you plan to request repairs.
- For condos, order the HOA packet early and confirm fees and turnaround.
- Call escrow to verify wire instructions before sending funds.
- Expect your Closing Disclosure at least three business days before consummation for mortgage loans, then plan your signing and walk‑through.
- Coordinate possession, keys, and utilities with your agent ahead of closing.
Work with a local guide
Escrow is smoother when you have a trusted advocate tracking every date, document, and detail. With deep knowledge of Beverly Hills, the Westside, and key Valley neighborhoods, you get clear guidance tailored to your property type and your goals. If you want a calm, concierge approach from offer to recording, connect with Nikko Santo Pietro. Get Access To My Private Listings.
FAQs
What is escrow in California real estate?
- Escrow is a neutral process where a licensed third party holds funds and documents, then releases them only when all written instructions are met.
How long does escrow take in Los Angeles?
- Many financed purchases close in about 30 to 45 days, with 21 to 60 plus days common; cash deals can close in roughly 7 to 14 days when title is clean.
What is the three-day Closing Disclosure rule?
- For most mortgages, lenders must provide your Closing Disclosure at least three business days before you can finalize your loan.
What happens on recording day in LA County?
- Escrow submits the deed to the county for recording, then disburses funds and releases keys per the contract once recording is confirmed.
Can I close escrow remotely if I live out of state?
- Many companies support electronic signatures and sometimes remote notarization; confirm early with your escrow and lender since some loan documents still need wet signatures.
How do contingencies affect my deposit?
- If you cancel within an active contingency period for a reason covered by the contract, you may be entitled to a deposit refund under the agreement’s terms.
