When it comes to buying or selling a property in California, the escrow and closing process is a critical part of the transaction. Escrow is a neutral third party that acts as an intermediary between the buyer and the seller, ensuring that the terms of the sale are met before the closing can take place. In this article, we will discuss the escrow process, the steps between contract and closing, and how long it typically takes to close in California.
The Escrow Process
In California, the escrow process is a critical part of the real estate transaction. Escrow is a neutral third party that holds onto the funds and documents related to the sale until all the terms of the agreement have been met. The purpose of escrow is to protect both the buyer and the seller by ensuring that all the conditions of the sale are satisfied before any money changes hands.
The Steps Between Contract and Closing
Once the buyer and seller have come to an agreement on the terms of the sale, they will enter into a purchase agreement or contract. This contract will outline the terms of the sale, including the purchase price, any contingencies, and the closing date.
Once the contract is signed, the buyer will typically make a deposit into escrow. This deposit is known as earnest money and serves as a good-faith gesture that the buyer is committed to the transaction.
From there, the escrow company will begin the process of verifying that all the conditions of the sale have been met. This may include tasks such as:
- Reviewing the purchase agreement to ensure that all terms have been met.
- Ordering a title search to verify that the property’s title is clear of any liens or encumbrances.
- Ordering an appraisal to ensure that the property is worth the purchase price.
- Requesting loan payoffs if the property is currently encumbered.
- Coordinating with the buyer’s lender to ensure that all loan conditions have been met.
Once all the conditions of the sale have been satisfied, the escrow company will prepare the closing documents. These documents will include the final settlement statement, which outlines all the costs associated with the transaction, including the purchase price, closing costs, and any other fees.
How Long Does It Take to Close in California?
The length of time it takes to close on a property in California can vary based on several factors. Typically, it takes between 30 and 45 days to close on a property in California. However, this timeline can be affected by factors such as:
- The complexity of the transaction
- The type of loan being used
- The number of contingencies in the purchase agreement
- The responsiveness of the parties involved in the transaction
- Any unexpected issues that may arise during the process
It’s important to work with an experienced escrow company that can help guide you through the process and keep things moving smoothly.
Learn More About the Escrow Process in California with Brighton Escrow
The escrow and closing process is a critical part of buying or selling a property in California. The process can be complex and time-consuming, but by working with an experienced escrow company like Brighton Escrow, you can help ensure that the process goes as smoothly as possible. If you’re in need of escrow services in California, don’t hesitate to contact us today.